Marketing Management - Proctor & Gamble

Marketing management

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
a) Background information of the company & preferred industry:............................................3
b) Outline marketing audit, overall market attractiveness and potential for market growth......6
PESTLE Analysis......................................................................................................................10
c) Marketing mix of Proctor & Gamble along with its target market.......................................12
d) Critically defended new marketing mix actions to achieve gaps between the company’s
present marketing strategy and external environment..............................................................13

EXECUTIVE SUMMARY
Marketing management is an area of management which deals with marketing or kind of
promotion of goods or services in an effective period of time. As, this report is completely based
on discussion of an industry forces such as suppliers or buyers impact (Gummesson, 2017). In
contrary, report has put its focus on selection of any one industry and also carrying marketing
audit in which model such as SWOT analysis, Pestle model along with porter five force model to
have discussion on internal and market attractiveness at a high point. Also, this report has
covered on industry analysis of the FMCG and checking an actual potential of it to conduct
complete analysis of the FMCG market to checkout how viable or reliable this industry is to
make perfect outcomes for business process of the P&G. Lastly, report has covered aspects of
major analysis of marketing mix and gap analysis between external environment.
INTRODUCTION
Marketing management is an organisational disciplines which highly focuses on a
practical application of the marketing orientation, techniques and also methods inside the
enterprise and an organisation along with an effective management of a firm's marketing.
Marketing includes ongoing activities by the firm to promote its products or services in an
appropriate manner. In the current era, marketing is the defined tools to make customers aware
about an actual products or services launched and process to make customer being loyal to
purchase more (Agwu, 2015). In business terminology, marketing is a necessity to develop more
strategies or action plan to gathers outcomes of the any business at the productive level and also
led its expansion. This report will develop on Proctor & Gamble which is an American largest
FMCG chain firm which uses to sell products or services of daily customer needs. This firm
provides products for kids, men and female at the greater segments.
This report will cover market attractiveness and understanding of potential growth of the
businesses. While developing this report, company's marketing mix will also be undertaken for
getting knowledge about an existing product or price strategies of the P&G.
MAIN BODY
a) Background information of the company & preferred industry:
Proctor & Gamble is an American multinational firm which deals in selling of the FMCG
products to their customer's on daily basis. FMCG is majorly stands for fast moving consumer

goods which are meant for using goods by consumer's daily basis. This company was founded in
the year 1837 and by William Proctor and James gamble (Icha, 2018). P&G is specialised in
products with varied ranges such as health/consumer care products, personal care & hygiene
products. P&G products is classified into beauty, grooming, health care, home care and also
baby. P&G has millions of the customer's who uses to buy FMCG item on daily basis along with
different level of choices to be offered to them (Taiminen, 2016). This industry of the FMCG has
wider structures, in which level of the supply chain is large and divided into the retail units at a
different level. P&G is currently valued at the 83.1 billion dollar sales annual in the year 2017-
2018 (FMCG revenues and info, 2019). As, this is a recording breaking sales in business
industry, in which firm is operating with an existing products along with launching new daily
usage item in this market.
In industry of FMCG, global market is segmented into different products types,
distribution channels and region. These market is consists of food & beverages, personal care
(such as soap, face-wash, shampoo and skin care) and home care.
The distribution channel for FMCG goods of the P&G is large supermarket, platform of
the e-commerce, retail shops etc. In this industry, product has wide reach and power of reach to
gather customer loyalty and priority satisfaction.

Sources: FMCG product classification and records, 2018
The given graph is the complete overview of global market of the FMCG of 2018 to
2025, in which growth share of food & beverages is rising and have expectancy to rise at the
potential level. This is why, people used to eat on daily basis such as biscuits, snacks, serial,
wheat etc., and customer uses to buy these products on regular basis instead of their high prices
(Järvinen, 2019). In the FMCG market, personal care products are majorly used by female such
as beauty care and skin care etc., and men uses the hair gel. So, this creates flux in the market. In
the given figures, it shown that from year 2018 to till 2025, Proctor and Gamble is forecasting
rise in revenue by 3.1 percent.
Illustration 1: FMCG product classification and records

Sources: FMCG business scenario on supply channels, 2019
In the above image, cut to cut overview shows that FMCG firms such as P&G, Unilever
etc., is majorly uses supermarket platform in which physical presences of the customer's is high
and because of increasing discounts or offers by these platform, P&G is capable to sell more. As
rise of supermarket chain, burden for P&G is also raised for increasing margin to their
supermarket owners and this is cost deal on a P&G.
This is an opportunity for P&G to shift to the e-commerce platform first to save cost,
time to transfer the products and sell more to the people. This as reason of increasing reach of
people to online selling platforms.
b) Outline marketing audit, overall market attractiveness and potential for market growth
Marketing audit is the comprehensive systematic, analysis and evaluation and level of an
interpretation of the business marketing environment which is both external and internal
(Hutchinson and et. al., 2015). This would also involves goals, objectives, vision & mission,
principles of the business firm or related industry to operates within the specific time zone. This
predicts about overall cultures or an environment in which firm operates and have continuances
Illustration 2: FMCG business scenario on supply channels

of its own potential customer's. This involves doing complete analysis of the external
environment such as macro and task oriented environment, building major conclusion on a
market attractiveness, internal capabilities and what distribution system firm uses to sell its own
products (Patti, 2015). In context of the P&G, this kind of an audit would helps to make the clear
understanding of market environment and overall market attractiveness. The explanation of the
SWOT analysis of a P&G is as follows:
SWOT analysis: This type of an analysis comprises of components such as S for
strengths, W for weakness, O for opportunities and T for threat, which can be underlying for
P&G out of their available resources and strategic implementation. This is used to get perfect
info & knowledge on an internal capabilities of this business entities.
Strength
 The major strength of the P&G is its portfolio of strong consumer
brand, in which consumer's of this brand have right perception towards
FMCG products or items.
 P&G has ultra-strong brand equity, loyalty of their customer for brand
such as Duracell, Gillette etc., which are well known in countries such
as India, UK and Malta.
 Perfect economies of scale and also the capacity and potential to
operate within the different market region and effective level of
distribution network is strong point of the P&G.
Weaknesses
 Some products of the P&G are still unidentifiable or declared imitable
products by the authorities as per broken down of a legal policies or
rules and norms to sell in the marketplace.
 Limited online presence is also weaknesses for P&G, because of which
P&G is required to keep their dependency on supermarket distribution
channels (Kerr, 2017). Due to this, margin level of each and every
distribution personnel has also increased and in due response, funds
outflow is also increasing.
 FMCG firms has less scope for the business diversification, as major
modification would led P&G to lost its own potential consumers along
with increased durability of the business operations.

Opportunities
 P&G have an opportunity to go for product innovation in personal care
& health care products to develops scope for increasing revenue or
those customers who uses to buy in same segment.
 Diversification is an opportunity for P&G, in which firm can be
diversify or replaces the health or treatment products by bringing any
new idea such as acquiring herbal segments or making quality check in
an existing products (Williams, 2017).
 Presence on online platform can be another option for P&G to initiate
reach of its own customers and also they have option to integrate their
products such as Gillette along with increases distribution network of it.
Threats
 Increasing business & product scale of the Unilever, Reckitt benckiser
etc., which are also operates into the same segment and products. I
response, Unilever and Reckitt put down put the invest of the million
dollars which is the threat for the P&g to operates in the FMCG
industry.
 International pricing standards and strict restriction of the WTO to led
selling within a recognised threshold has created burden on P&G to
reduce their selling limits to maintain market of others.
Market attractiveness framework: For P&G, Porter five force analysis will be used to
analyse market forces such as an influences of the buyer, suppliers, internal and outer threats,
increasing rivalries and replacement by substitutes. These resources have led the major difficulty
for P&G to arrange resources and sell effectively to potential peoples or customer's. For this
FMCG leader, the porter five forces model are as given under:

Sources: Porter five force model, 2018
Bargaining power of the buyers: In this FMCG industry, there is less product
differentiation for the products made by the business firm in this sector, because of all consumer
goods are to be used on daily basis. Thus, customer's have different varieties to select and price
of these products are also derived (Atwal, 2017). The switching cost is low here, as they are free
to select goods as per own wish. In P&G, customer loyalty has been seen in food or beverages
sector and personal & skin care products which means customer's of the P&G is loyal in these
two segments and thus their bargaining power of buyer is also moderate.
Bargaining power of the suppliers: The suppliers supplies P&G with the technology,
raw inputs, technical aspects and packing material or equipments for their products. In this
FMCG market, large number of the suppliers are existing which has their own terms or condition
to operate at the marginal values. Thus, in that situation, supplier's switching cost is low for the
P&G. Also, P&g purchases in the bulk quality will be cost benefits to this firm to save its own
saving to lead higher profits and business productivity.
Competition rivalries: P&G operates in the consumer goods industry, in which industrial
competition is high and diverse to operates within given sector. There are large number of firms
which operates into consumer goods and selling similar products. These are threats for the P&G,
Illustration 3: Porter five force model

as Unilever is bringing innovation for R&D process and development of new products. Threat
level is high, bot not severe as of customer loyalty.
Threats of the substitutes: In the FMCG, substitutes of these consumer goods, as they are
similar in use, different in name or logo. Even, the substitutes are low in cost and better quality
to be sell to customer's (Aghazadeh, 2015). In this industry, P&G have substitutes which can
easily replaced the products of this firm such as use of low cost product which are now available
in good quality and thus it would lead to less sales to the P&G. Here, risk is high and severe.
Threats of the new entrants: Pernod Ricardo is the new entrants in this FMCG sector,
which can be act threats for the P&G, Unilever etc. This new start-up has used process of an
innovation to develops any new products to compete P&G and Unilever. In this, P&G needs to
have command and looks on what this new business is doing, understands the market and sells
accordingly. Threats of new entrants are high and major, because new entrants are offering
products at a low cots and better quality or with time.
PESTLE Analysis
In context of the P&G, this is an essential for P&G to do external analysis of a factors
such as political, economical, social, technological, environmental, legal etc. In the FMCG area,
P&G is acting as a special tool and have strong command on these issues of the various
environmental forces. The major discussion of the Pestle analysis for this leading FMCG is as
follows:
Political environment: In countries like Malta, sometimes political challenges or
scenario are not in control, so its hard to take business decision making in the proper form or
manner (Homburg and et. al., 2017). Thus, in that situation, P&G has taken decision in the forms
of building political action committee which is deliberate & impartial committee. Also, because
of political fluctuation in the country such as surrender of the government bodies, political
failures etc., P&G has suffered with impact of less business outcomes or results in given period
of time.
Economic environment: In this factors such as an exchange rates, interest rates, price
fluctuation etc., are some major economical influences, which are responsible to effect the
business regulation of the P&G. In this leading FMCG, economic factors have put down impact
on this firm such as lack of investment, less FDI in business sector, realises of funds by agencies

to rescue business regulation of the P&G. Thus, it will be prominent to have correct regulation in
term to continue business with an effective strategies.
Social environment: Proctor & Gamble has large social influences on its people such as
change in usage pattern of the P&G product, word of mouth, social causes & relationship are
some of social concepts cum issues which has impact's on P&G customer purchasing, its
regulation and instant decision taking at the major point of view. Social factors has influenced
the buying pattern of a customer's and effects on buying suitability of the people who uses
consumer durable goods to rise their major satisfaction. FMCG has great influences of how
people socially reacts.
Technological environment: Online buying platform such as e-commerces is the major
chances for the P&G to sell their consumer goods using technology such as Mobile Apps, portal,
websites, sellers platforms etc. (Lusch, 2014). As, this involves high cost incurring, but still have
suitability to run P&G strategy to gain customer loyalty at the bigger segment. The impact is
positive to gather customer at the top priority level, but one the same hand, cost is high which is
a burden on profit making capacity of the P&G.
Environmental environment: In the global level, revolution is going for protection and
removal of plastic bags which when burnt realises the harmful gases, air and creates wastage
components threats for both human and animals. WTO and international environmental platform
has made perfect policies & guidelines to stop usage of poly-bags and start using polyethylene
bags which can b thrashed after its first and final use. P&G is required to change material of
packaging bags to save environment or time.
Legal environment: This will be prominent to use various legal act or formulations such
as patents act, copyright laws or trademark regulation in order to prevent legal jurisdiction and
identity of the consumer goods from being copied by others. The impacts of these are positive
continuation and even without “ZERO” harm to revenue and profitability.
c) Marketing mix of Proctor & Gamble along with its target market
Product: The product marketing mix refer to the outputs that are offer to its customers in
return of monetary gain. In case of Proctor & Gamble they provide consumer goods in market it
include beauty product, health care, fabric and food products to different customers. Like in
Malta company increase their product tangibility and value which satisfy customers need it
determine that management want to increase sell of its products.

Place: In case of place, company decide venue through which they reach their customers
to sell its product for target market. In context of P&G, management has vision to sell its
products in overall world. Further in present scenario venue through which company market or
sale its product are retailers, whole-seller, supermarkets and P&G shop. Specifically in Malta
company focus on retailers to sell its products.
Promotion: The word promotion refer to activities by which an organisation influence
and attract customer to sell its product. Their are different tactics are present in market which
help P&G to target their customers. Management of Proctor & Gamble provide main focus on
aggressive marketing to promote the company. While to promote the products company make
creative ideas to advertise them which determine to increase sell of company products. Along
with this company execute primary method of communication to promote its products like
television, radio and social media.
Price: The price marketing mix determine point and range of product through which
company decide price of product. In context of P&G management implement price by which
they maximize their revenue it govern to increase their profits (Vargo, 2017). For the launch of
new product company develop prices penetration strategy through which they enter in market
with low price as when demand of product increase they move towards premium price strategy
which help company to increase their profits.
Different brands for different target market
Proctor and Gamble manufacture different types of products that they offer in market.
For this they decide segment and target market to approach potential customers. P&G launch
new beauty product in market as it help them to increase their market share. For this company
target female customers to sell its product for all ages respectively but specifically who are less
youth. It include working women, students and models.
For another product that is developed by company is relate to health care products. Under
this company target those customer which are health conscious, patients and sports person. As in
this case company implement price optimum strategy by which they earn high profits which
determine that Malta and UK both are developed country. So company produce those product
which fulfil demand or want of customer.

In context of baby care product company target different customers as specifically for
these Proctor & Gamble target well wisher, parents and doctors. For this company has to found
different needs under management sector that indicate its expansion and range of its products.
For P&G, its own products or service mix is comprised of 300 different brands and
operates in 90 different nation.

d) Critically defended new marketing mix actions to achieve gaps between the company’s
present marketing strategy and external environment
In the previous assessment, there was discussion on external forces of a businesses such
as political which has impacts P&G to structures new policies or an action plan to fill gaps in
between marketing strategies & external environment. P&G is using targeting customer who are
in middle class structure and also their income level in prejudice (Kotler and et. al., 2018). If, it
would compare to an economical factor of an pestle, low income of Malta's people is the best
reason for why P&G is targeting the middle class people or middle level of customer's. This is a
part of price mix, in which people of the Malta are forced to takes the consideration of price
factor of the marketing mix at an optimised stage of time.
As, present strategies of the P&G is the major flux, in which company is coming with
new and defined consumer goods, but still they are targeting existing customer's and no more
add-on to the existing customer's portfolio. In this, components of the marketing mix such as
price, products, promotion, place to re-implement new strategies to get an advantage to business

operation to the defined point of time. New marketing strategies such as structuring of the new
pricing policies such as using of an extensive strategy to sell consumer goods in an effective
manner. The structuring of the new marketing mix & strategies are as follows:
Price mix: P&G have major option to use market penetration, in which they can targets
its existing customer on penetration pricing and same-side P&G must go for attracting new level
of customer at price skimming. This is undertaken after the analysis of economic factors such as
inflation rate, exchange policies of the Malta to protect the higher cost occurrences on priority
level of business operations. This is necessary for P&G to do revision of a defined in order to
gather perfect response to the customer wants or desires in given point of time.
Product mix: This is a necessary for P&G to check their existing product portfolio to get
any option to develop new consumer goods either in consumer goods, health & personal goods
etc., to gather consumer interests into the given point of time. Also, P&G have to look on trends
that are running in the market such as online platform sales, empowering retail to get informed
about the product and creating infrastructure policies to makes out physical existences of defined
products or services. The gaps shows that government regulations in the Malta are strict which
has led P&g to struggle with distribution channel or accumulation of their suppliers.
P&G have major option to led new product development into personal health care
segment and baby products to gain market strengths or competitive position. Also, its prominent
for P&G to structures perfect product in order to gather new customer' to sell its own strategic
customer to sell.
Promotion mix: In this, sales promotion such as customer awareness, product knowledge
advertisement, price protection, offers/discounts are some of new promotion mix, in reality
proven as reliable to make suitable decision making into the given period of time. P&g have
option to plan an initial seminar, in which product will be made aware among customer in first
look and initiates the final purchases. Also, its majorly necessary for P&G to plan a strategical
design in order to suitable results out of the given business context or regulation of customer
royalty into the defined manner. This actually comes from analysis of the gap in which factor
such as environmental has been impact on business operation such as at time of bank of the poly-
bags, by help of this, P&g can promotes their products as environmental friendly to make sense
of the social message to be act as friendly.

Place mix: In this, P&G is completely depends on the physical supply chain or model of
distribution to spread any product at a major or defined zone. Also, this is a costly deal, because
of increasing margin demand by distributors to either hold or realises item to the retail entities. In
this, P&G top management is necessary to take decision making in relation to structuring policy
to slow down the dependency of selling on e-commerce also to save increasing margin per sales.

CONCLUSION
From the above report, it is concluded that marketing management has been proven right
for leading business portfolio in a productive manner or stage of the working. Concept of the
marketing has made understood industry attractiveness with help of the portal five forces model
along with making a right and correct decision on what will makes business to operates with the
increased abilities or effeciences at an increased stage of time. SWOT analysis has been proved
to know internal capabilities of the business firm and in response what kind of relevant can be
made to increases the business at a growth based stage of time. Lastly, pestle analysis has proven
necessary for firm to take preferred decision making to led business existence at the greater level.

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