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Marketing Plan for Procter & Gamble

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Added on  2023/06/14

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The report is based on the analysis of the international expansion related plans that is being made by P & G, which is multinational organization of American origin. The company mainly operates in the FMCG sector. The organization is facing stiff competition from other FMCG organizations like Loreal and Unilever in the various countries where it operates. The company is mainly aiming at increasing its revenues and international presence by expanding its operations to the other countries. The country that has been chosen for the international expansion related plans is Nepal in Asia. The brand that is chosen for expansion related plans of P & G is Pantene.

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Running head: MARKETING PLAN FOR PROCTER & GAMBLE
MARKETING PLAN FOR PROCTER & GAMBLE
Name of the Student
Name of the University
Author Note

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1MARKETING PLAN FOR PROCTER & GAMBLE
1.Executive Summary
The report is based on the analysis of the international expansion related plans that is being
made by P & G, which is multinational organization of American origin. The company
mainly operates in the FMCG sector. The organization is facing stiff competition from other
FMCG organizations like Loreal and Unilever in the various countries where it operates. The
company is mainly aiming at increasing its revenues and international presence by expanding
its operations to the other countries. The country that has been chosen for the international
expansion related plans is Nepal in Asia. The brand that is chosen for expansion related plans
of P & G is Pantene. Asia has always been a booming market and has been able to provide
huge business to the organization in all the different sectors in the industry. This is the main
reason behind the choice of target market by P & G. Nepal also has a booming economy and
the choices of the consumers are similar to those of the consumers of the countries in Asia.
This will make it easy for P & G to easily decide its target market and further offer the
products that will be suitable for them. The strategy of the company related to products, the
prices of the products and the promotions are analysed in the report. The distribution related
strategy is also discussed in detail. The financial budget of the company is analysed in the
report which will help P & G in planning the operations in Nepal.
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2MARKETING PLAN FOR PROCTER & GAMBLE
Table of Contents
1.Executive Summary....................................................................................................1
2.MARKETING OBJECTIVES....................................................................................3
3.TARGET MARKET...................................................................................................4
4.PRODUCT STRATEGY............................................................................................6
5.PRICING STRATEGY...............................................................................................8
6.PROMOTION STRATEGY.......................................................................................9
7.DISTRIBUTION STRATEGY.................................................................................10
8.FINANCIAL SUMMARY........................................................................................12
References....................................................................................................................17
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3MARKETING PLAN FOR PROCTER & GAMBLE
2.MARKETING OBJECTIVES
Procter and Gamble Co. or P & G is a multinational organization of American origin
which provides consumer goods. The headquarter of the company is located in downtown
Cincinnati, Ohio and was established in the year 1837 by Irish American James Gamble and
British American William Procter. The company specializes in personal care products and a
wide range of the various cleaning agents (Us.pg.com, 2018).
The report will be mainly based on the international expansion related plans of
Procter & Gamble in another country in order to compete with the other well-known
organization operating in the same industry including, Loreal and Unilever. The major aim of
the company is to increase its revenues by increasing its international presence in the various
areas of the world. The country that is chosen for the expansion related plans of P & G is
Nepal and the brand that is decided to be launched is Pantene.
The major marketing related objectives of Procter & Gamble related to production of
Pantene in Nepal are as follows,
International growth of the organization in Nepal so that it can successfully
compete with the shampoo based products manufactured by its competitors,
Unilever and Loreal. Obtain about 20% of the entire retail market share of
Nepal.
The other goal which is related to the marketing plan of the organization is to
increase its global presence and focus on every segment of the market with the
help of its famous brand Pantene (Aliouche 2015). Achieve at least 3 types of
hair products for each of the consumers in Nepal.

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4MARKETING PLAN FOR PROCTER & GAMBLE
The target of the organization is to achieve total revenues of more than Re. 30
lacs. The total profits that are aimed to be achieved by the organization is
more than Re. 10 lacs in the first year of its operations in Nepal.
3.TARGET MARKET
Market segmentation of P & G – The market has huge number of buyers and the
wants and the desires of the buyers are also different from each other. The market
segmentation related process of P & G aims to divide the large heterogeneous market of the
organization into numerous smaller segments which can further help the organization in
reaching the customers easily and in an efficient manner (Basnet 2014). The important
strategies related segmentation that can be used by P & G in its target market Nepal are as
follows,
Consumer based market segmentation – The process of market segmentation based
on the consumers of the company consist of major variables which are,
Demographic segmentation - This process of segmentation is based on
various demographic variables like, age, sex, family size, income and
occupation. These variables will affect the choice of products that is
made by the consumers.
Geographic segmentation - Other major segmentation process of the
consumers is geographic segmentation. This process consists of other
variables like, climate region of the world, density of the population.
The weather and climate of Nepal will affect the choice of the different
types of shampoos provided by its brand Pantene (Baral et al. 2016).
Psychographic segmentation - This is another method which divides
the various consumers into group based on life style and social class.
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5MARKETING PLAN FOR PROCTER & GAMBLE
The consumers who belong to the same demographic group can have
different psychographic preferences. The consumers of Nepal are
divided into various social classes even though they belong to the same
demographic area. The Pantene brand provides shampoos of various
ranges and the choice of the suitable product depends on this factor
(Kim and Aguilera 2016).
Behavioural segmentation – This method of segmentation can be used
by P & G to divide the consumers based on the attitudes, knowledge,
uses and the responses that they provide to the product. The behaviour
related variables are crucial for the easy segmentation of the markets
(Chaisse and Bellak 2015).
Target market – The marketing strategy of P & G mainly involves targeting the
market which can be used to evaluate segments of a company that has been developed. The
target market of P & G can be selected by using the following strategies,
Undifferentiated market This strategy is used by P & G when the company
wishes to ignore the various segments that are present in the market and
further target the entire market. This strategy can also be termed as mass
marketing strategy. The products which will be offered under this strategy are
therefore targeted towards all the market segments. This strategy is related to
the offering of general products to the consumers of all the different groups of
P & G. The products that are offered with the help of this strategy are the
different kinds of shampoos provided under the brand of Pantene (Deresky
2017).
Differentiated market strategy This marketing strategy involves the
significance that is given to the various target market segments of the
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6MARKETING PLAN FOR PROCTER & GAMBLE
consumers. Under this strategy P & G targets the specific products to the
target market which is based on the segmentation related techniques that has
been used earlier. The products will be targeted according to the needs of the
various consumers. For example, Pantene offers products which belong to the
higher range which are targeted to the consumers belonging to the upper level
of the society. The mixes of benefits of the various products that are desired
by the consumers are also quite different. The products of P& G that will be
offered with the help of this strategy are the premium shampoos manufactured
under the brand of Pantene (Ghimire, Sexton and Rigatti 2017).
The target of P & G in Nepal will be therefore decided based on the wants and the
needs of the consumers of the country. P & G is also planning to add some new shampoos
and body wash products to the already existing product line of the Pantene brand. The
products will be offered based on the variations of choices of the various consumer groups
and the ways by which they behave in the market (Elsey et al. 2016). The age of the
customers who will be major part of the target segment of P & G in Nepal will be within the
range of 20 and above. The product Pantene is targeted towards both the male and the female
customers present in the segment.
Market positioning – P & G has been a consumer product giant and the main aim of
the organization is to maintain its position in the market based on the competition that is
provided by other organizations like, Loreal and Unilever. The expansion plan of the
organization will help it in achieving this faster (Kim and Aguilera 2016).

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7MARKETING PLAN FOR PROCTER & GAMBLE
4.PRODUCT STRATEGY
Procter & Gamble or P & G is a leading multinational FMCG company which a wide
range of products including, grooming, beauty and personal care. The product portfolio of the
company that will be offered in its new market segment is as follows,
The various hair and skin care related products of P & G brand will be offered to the
consumers in the beauty segment. The brands which fall under the segment of beauty are
Pantene oil replacement shampoo, the Pantene Gold series. The company will offer other
products in the category of shampoos and conditioners that can be used by the consumers
belonging to the various age groups (Halperin 2016). The company will further aim at
targeting a niche segment of aged people with the product named Pantene Moisture Boost
Shampoo for women who belong to the age above 30. The company will also offer various
products that are required for grooming of males and females. The brands or the products that
will be offered by P & G in this segment are, male shampoos which will be able to control
hair-fall related issues in tough situations and climates (Hindman 2014). The products
belonging to this segment are sold under the brand name, Pantene Men. This brand of P & G
already holds the top position in the market and is able to cater to the consumers belonging to
different age groups and belonging to different social class (Karki Nepal 2016). P & G offers
products related to baby care which include, baby shampoos and body washes. These
products will be marketed in Nepal under the brand name of Pantene. The label of the
product that will be marketed in Nepal is Pantene Shampoo.
The products that will be provided by P & G in Nepal under the brand name of
Pantene can be divided according to the values perceived by the customers.
Core benefit – The best quality products will be provided under the various
categories in the product portfolio of P & G.
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8MARKETING PLAN FOR PROCTER & GAMBLE
The actual products – The shampoos are made by using high quality raw
materials which can further help in improving the hair quality of the customers
in Nepal (Hotchkiss, Godha and Do 2014).
Augmented products – The products that will be manufactured for the market
of Nepal will be based on the climate and the weather conditions. The hair
quality of the people will depend on the areas in which the customers stay.
The retailers will also be provided special training so that they are able to offer
the products to customers according to their specific needs (Lane and Milesi-
Ferretti 2018).
5.PRICING STRATEGY
The pricing policy of the various brands that are offered by P & G are different and
vary from market to market. The price of the products mainly depends on the quality of
products and the value that is held by the brands. The policy that is applied related to the
pricing of different products is mainly based on the ways by which the company aims at
gaining the shares in the market and further generate revenue. The various pricing strategies
that are used in this case are penetrating pricing, competitive pricing and the process of
premium pricing. The brand of the company whose sale can be affected by many competitors
is offered under the strategy of competitive pricing (Paudel 2016). The company will
decrease the prices so that it can successfully compete with the other organizations already
operating in the industry. The brands of the company for which a new consumer base needs
to be created are placed under the penetrating strategy of pricing. The prices of the products
that are related to the penetrating pricing strategy are generally quite low as new market area
needs to be captured for an entirely new product. The high quality products of the company
mainly fall under the premium pricing category. The products which fall under this category
are of high quality and the reduction of prices are not possible (Pierce 2015). The premium
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9MARKETING PLAN FOR PROCTER & GAMBLE
and high quality products of the company include, Pantene Gold Series. The company is also
planning to launch some new products under the beauty category which will fall under the
penetrating pricing strategy. It is evident from the discussion that P & G will apply all the
three pricing strategies to use create a market base in Nepal. These will further help the
organization in creating a different position in the new market area and provide high levels of
competition to the other organizations (Paudel 2016).
The competitors of P & G in Nepal are mainly Loreal, Garnier, Lotus Herbals. The
price of female products of Loreal range from Re. 500 to Re. 1200. The prices of the male
shampoos range from Re. 200 to Re. 1000. The female products of P & G will be priced at
Re. 300 to Re. 1000 and the male shampoos will be priced at Re.200 to Re. 800.
6.PROMOTION STRATEGY
The various products that are offered by P & G are popular and liked by the
consumers in the world. The organization is planning for international expansion and the
promotional strategies hold a lot of importance in this case. The communication related
tactics that are used by the company are mainly related to reaching its target consumers
(Shrestha 2016). The organization uses mainly five types of advertising strategies in this case
which are described as follows,
Advertising – The process of advertising serves as the major communication
related tactics of P & G. The various media that will be used by P & G to
advertise the products in Nepal are, radio, television, online media and print
media. The digital media based marketing will be the best option that can be
used by P & G in the market. The reach of the brand will increase and the
customer base will also be formed in a proper way (Sunam and McCarthy

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10MARKETING PLAN FOR PROCTER & GAMBLE
2016). This strategy is aimed towards the consumers belonging to the age
group of 20 to 60.
The direct marketing related process mainly involves the communication takes
place between the organization and its corporate clientele. The communication
that P & G will have with the distributors in Nepal is also a part of direct
communication (Shrestha 2016). This strategy is aimed towards to the
consumers of the age group between 30 to 55.
Sales promotion – The process of sales promotion will be used by P & G for
products like, soaps, detergents and many more.
Personal selling will also be used for the purpose of successfully selling
products which are related to the current usage of the consumers (Vernuccio
and Ceccotti 2015). The personal selling will be done by the local employees
who will appointed and further trained by the company regarding the various
products of the brand and its benefits. This strategy will be applicable for the
housewives who find it convenient to shop products from the salespeople who
visit their homes.
Public relations are based on the sponsorships that are provided by the
company. This strategy will also be applied by P & G in the new market area
of Nepal to increase the awareness of its brands among the consumers
(Wieners, Neuburger and Schickhoff 2015). The sponsorships will be helpful
to increase the sales of the company and awareness of the brand among the
customers.
The online media based promotional strategy of P & G is the area where it capitalises.
The organization aims at attracting the consumers towards the organization with the help of
its effective online strategies. The creative advertisements of the products and the
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11MARKETING PLAN FOR PROCTER & GAMBLE
endorsements that are done with the celebrities is a major strength of the company. The
organization will mainly take the help of marketing channels like, television, media,
newspaper advertisements to create awareness of the brands among the prospective
consumers. The company will aim at making tie-ups with various websites so that it can
capture the market easily (Shrestha 2016).
7.DISTRIBUTION STRATEGY
The mission and the vision statement of P & G mainly deals with the products that are
provided to the consumers. This also involves the guiding the endeavours of the organization
for the major element of the marketing mix (Vernuccio and Ceccotti 2015). The distribution
of goods is related to various entities which are discussed as follows,
Retailers – The retailers in the new market area are considered to be main
venue where the organization aims to reach the target consumers. P & G
searches for retailer stores that are located in a strategic manner and can be
helpful in increasing the revenues. The accessibility of the products by the
consumers is also an important factor that will help in increasing the
profitability of
P & G (Paudel 2016).
The company further needs to create a group of authorised distributors so that
it can distribute its products in such a manner by which it can reach the
consumers. The distributors are third parties which cater to various needs of
business organizations like Procter & Gambled which plan for international
expansion in new countries (Pierce 2015).
The most effective distribution strategy which will be used by P & G in Nepal
will be the opening up of stores that are operates solely by the company. An e-
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12MARKETING PLAN FOR PROCTER & GAMBLE
commerce website is the easiest way by which the organization will be able to
reach more number of people within less amount of time. This will be helpful
for P & G to achieve its target of increasing its international presence and
revenues at the same time. The e-commerce website that is operated by the
company is mainly focussed on the needs of the American market.
P & G has to therefore make significant changes in the offerings of the website
so that it is able to cater to the needs of the consumers of Nepal (Elsey et al.
2016). This will be helpful for the company to create its base in the country
and further increase its revenues to compete with the other giant companies in
the FMCG sector. All the three distribution strategy that are discussed above
will be therefore useful for the profitable operations of P & G in the market
area of Nepal which is new to the organization (Chaisse and Bellak 2015).
The products of P & G will be transported to the various stores with the help
the efficient logistics system that is maintained by P & G in many countries.
8.FINANCIAL SUMMARY
The Marketing Budget of Procter and Gamble for its expansion plan to Nepal has
been given as follows:
CAMPAI
GN TYPE
Q
TY
PROJEC
TED COST
PER UNIT
PROJECTE
D SUBTOTAL
National
Marketing SUBTO
TAL
Re.
25000.00
Banner Ads 5 Re.
5000.00
Re.
2,5000.00
Re.
-
Re.
-
Local
Marketing SUBTO
TAL
Re.
60000.00

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13MARKETING PLAN FOR PROCTER & GAMBLE
Newspaper 5 Re.
6000.00
Re.
30000.00
In-Store
Marketing 5 Re.
4000.00
Re.
20000.00
POP 2 Re.
5000.00
Re.
10000.00
Re.
-
Public
Relations SUBTO
TAL
Re.
10000.00
Public Events Re.
-
Sponsorships Re.
-
Press
Releases 10 Re.
1000.00
Re.
10000.00
Webinars Re.
-
Conferences Re.
-
Client Events Re.
-
Re.
-
Content
Marketing SUBTO
TAL
Re.180
000.00
Sponsored
Content
Re.
-
Landing Page 15 Re.
12000.00
Re.
180000.00
White Papers
/ eBooks
Re.
-
Re.
-
Social
Media SUBTO
TAL
Re.
80000.00
Twitter 20 Re.
1000.00
Re.
20000.00
Facebook 20 Re.
1000.00
Re.
20000.00
Interest 20 Re.
1000.00
Re.
20000.00
Instagram 10 Re.
1000.00
Re.
10000.00
Google+ 5 Re.
1000.00
Re.
5000.00
LinkedIn 5 Re. Re.
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14MARKETING PLAN FOR PROCTER & GAMBLE
1000.00 5000.00
Online SUBTO
TAL
Re.
50000.00
Blog 5 Re.
8000.00
Re.
40000.00
Website Re.
-
Mobile App Re.
-
Mobile Alerts 10 Re.
1000.00
Re.
10000.00
Email
Newsletter
Re.
-
Re.
-
Advertising SUBTO
TAL
Re.125
500.00
Online 4 Re.
25000.00
Re.
100000.00
Print 3 Re.
8500.00
Re.
25500.00
Outdoor Re.
-
Radio Re.
-
Television Re.
-
Re.
-
Re.
-
Web SUBTO
TAL
Re.
74000.00
Development 1 Re.
64000.00
Re.
64000.00
Pay-Per-Click
Marketing 1 Re.
10000.00
Re.
10000.00
SEO Re.
-
Re.
-
Re.
-
Market
Research SUBTO
TAL
Re.
68000.00
Surveys 6 Re.
8000.00
Re.
48000.00
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15MARKETING PLAN FOR PROCTER & GAMBLE
Impact
Studies 2 Re.
10000.00
Re.
20000.00
Re.
-
Sales
Campaigns SUBTO
TAL
Re.119
000.00
Campaign A 1 Re.
59000.00
Re.
59000.00
Campaign B 1 Re.
60000.00
Re.
60000.00
Campaign C Re.
-
Campaign D Re.
-
Campaign E Re.
-
Re.
-
Other SUBTO
TAL
Re.
333000.0
0
Premiums 3 Re.
78000.00
Re.
234000.00
Corporate
Branding
Re.
-
Business
Cards 18 Re.
5500.00
Re.
99000.00
Signage Re.
-
Re.
-
Total Re.
1124500.00
Projected Profit and Loss Income Statement
The projected Profit and Loss Income Statement has been given as follows:
Year 1
Revenue
Gross revenue Re.5,000

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16MARKETING PLAN FOR PROCTER & GAMBLE
,000
Cost of goods sold
Re.1,840
,000
Gross margin
Re.3,160
,000
Other revenue [source]
Re.34,00
0
Interest income Re.0
Total revenue
Re.3,194
,000
Operating expenses
Sales and marketing
Re.1124
500
Payroll and payroll taxes
Re.20,00
0
Depreciation Re.0
Maintenance, repair,
and overhaul
Re.10,00
0
Total operating Re.1154,
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17MARKETING PLAN FOR PROCTER & GAMBLE
expenses 500
Operating income
Re.2039
500
Interest expense on
long-term debt Re.0
Operating income before other
items
Re.2039
500
Loss (gain) on sale of
assets Re.0
Other unusual expenses
(income) Re.0
Earnings before taxes
Re.2039
500
Taxes on income
3
0%
Re.924,4
56
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18MARKETING PLAN FOR PROCTER & GAMBLE
Net income (profit)
Re.1115
044
Cumulative income
Re.1115
044

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19MARKETING PLAN FOR PROCTER & GAMBLE
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21MARKETING PLAN FOR PROCTER & GAMBLE
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