Procter & Gamble vs Unilever Competitive Analysis

This assignment delves into a comparative analysis of Procter & Gamble (P&G) and Unilever, focusing on their competitive strategies within the consumer goods industry. It examines P&G's market positioning using Porter's Five Forces framework, assesses its strengths, weaknesses, opportunities, and threats (SWOT), and explores its overall marketing approach. The assignment draws upon scholarly articles, company reports, and online resources to provide a comprehensive understanding of P&G's competitive landscape.

Business Project

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................1
a) Comparative analysis of Procter and Gamble....................................................................2
b) Considerations to look upon by Procter and Gamble look while creating Social Impact..5
c) Social Activities in which Procter and Gamble should engage..........................................7
d) Procter and Gamble should pay attention to their wider social responsibilities................8
e) The way in which Procter and Gamble needs to balance the two pressures......................9
f) Investigating in the theory of CSR, Citizenship, philanthropy, social impact..................10
Discussion.............................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
In the modern era, the competition among business in almost every industry has become
so intense that it is no longer easy for firms to gain advantage over other market players.
Furthermore businesses such as Procter and Gamble need to focus on their overall operations in
order to attract desired number of customers. It can be stated that Procter and Gamble was
founded in the year 1837 and the firm is carrying out its operations from more than 179 years
(Achrol and Gundlach, 2014). It has headquartered in Ohio, United States and its founders are
from United Kingdom. During initial stages, Procter and Gamble carried out its operations in
United States only and it was in the year 193 when the company expanded its business practises
in international market. Today the selected business enterprise is considered as one of the most
renowned brand in the world which carries out operations worldwide. The product range of
Procter and Gamble includes products such as baby care, family care, grooming, health care,
home care, skin care etc., (Hatten, 2011). The key target markets of Procter and Gamble
includes Europe, Asia pacific, South America, North America, and Greater China, Africa,
Middle East and India. Furthermore, the selected business enterprise has targeted the people
which usually fall in middle income group of the society.
The main reason behind selecting Procter and Gamble as an organization can be termed
as its strategies with regards to carrying out international operations. One of the most interesting
things about Procter and Gamble is that instead of operating with standards products in different
international market, the brand has implemented strategy of differentiation (Buxel, H.,
Esenduran and Griffin, 2015). For example the product offered by Procter and Gamble in India
are completely different from what is offering in counties such as North America and South
America. This has resulted in developing sense of satisfaction among customers in international
market and supported Procter and Gamble in emerging as a strong brand in market. The
organization is worth studying because its study will reveal the fact that how Procter and Gamble
has positioned itself in many competitive markets of the world (Masterson and Pickton, 2010).
Procter and Gamble also carry out various activities in order to accomplish its corporate
social responsibilities. For example in a country like India, the selected company is offering
education program for children in order to carry out their growth and development. In the present
research report different types of models such as Porter five forces and Porter Generic Strategy
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has been used in order to identify the competitive positioning of Procter and Gamble (Dinnie,
2015).
a) Comparative analysis of Procter and Gamble
Procter and Gamble being a public sector organisation is an illustrious American
international consumer goods venture that is operating since 179 years with its headquarter in
Ohio, US. It is referred to serve at a global level with some leading products like cleaning agents
and personal care commodities. It is currently working with around 125, 000 number of
employees to handle its worldwide operations. It is also evident to sell the product of Pringles
that belongs to Kellogg Company involved in the food product line of Procter and Gamble
(Grant, 2016). It is however evident to possess some leading competitors who are operating in a
similar set of market as that of Procter and Gamble. These are Revlon, L'Oreal, Unilever,
Colgate Palmolive and Johnson and Johnson, etc. It is therefore important for the quoted entity to
operate with a strategic context of merchandising their goods and services in the market that will
in turn assist them in combating the ferocious state of rivalry in the market. It is however with a
prime responsibility of their sales and marketing personnel's to carry out a principle investigation
of their existent positioning in the market (Usui, 2008).
This will in turn support them to frame some succeeding schemes to attain a prosperous
future of their business. It is therefore on referring to the unique selling point (USP) of Procter
and Gamble where they are referred to be one of the oldest consumer products organisations that
possess the most stable nature and is widespread in above 180 different nations. It carries the
most vibrant outlook towards serving their clients and users in the sector of FMCG that can also
be depicted from its tag line that specifies that “touching lives for improving life” (Hoffman,
Corbett, Joglekar and Wells, 2014). There together exists yet another strategic outlook of work
adopted by Procter and gamble with reference to their applied tact of segmentation, targeting and
positioning (STP). Wherein, their segmentation criteria have determined products and services
that fulfil the daily needs of consumers. Additionally, their targeted group has recognised a major
intervention of middle class families where they serve all sort of household needs of individuals.
Lastly, the positioning action plan of Procter and Gamble is evident to improve the living
standards of customers where they believe in serving superior quality goods to them (Blakeman,
2007).
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On together referring to the product portfolio of Procter and Gamble, it is also evident to
deal with more than 300 different brands who are directly associated with it. Procter and Gamble
with its multi divisional structure of the organisation was designated at 6th largest position as per
its acquired market capital and 14th largest as per its enumerated profit in the year 2008. Where,
as per the latest market statistics, it has hereby obtained a net margin of 46.84% that is referred to
be a high range of profits in comparison to its contenders (West, Ford and Ibrahim, 2015). This
ratio has thereby depicted some leading strengths of the cited firm where from the total number
of 300 brands, its 24 affiliated brands are evident to make an annual sale of more than 1 billion
dollars. With respect to which, Procter and Gamble is dealing with highly recalling brands that
has a high perceptibility of serving quality goods and services to the consumers. It is also due to
its superior marketing and advertising strategies the brand Procter and Gamble has also served as
sponsors in some leading entertainment and sports events (P & G SWOT analysis, 2016).
However, there together exist certain deficit dimensions of Procter and Gamble where
they are often required to deal with some fraudulent measures where varied counterfeit products
are being sold in the name of their brand. Wherein, their products are together dealing with an
intense state of competition in comparison to those who are playing in the biggest set of markets
with an international recognition of their brand. Whereas, there together exists some vital
opportunities for the establishment from which they can duly refer to enter into the rural set of
markets in order to raise the penetration in urbanised areas (Ashenfelter, Hosken and Weinberg,
2014). Another vital alternative of mergers and acquisition is also supportive to address the
increasing buying power of the customers to satisfy their augmenting demands. It is with a
relative outlook of considering the prevalent occurrence of threats where an increasing level of
competition in the FMCG sector is necessitating FDI to allow more international brands in the
retail sector. Wherein, Procter and Gamble is together evident to face an aggravated state of
competition even from the non-branded and local commodities where the people are more likely
to purchase low priced goods and services (Harker, 2009).
An abstractive model is more likely to support in making a comparative analysis of
Procter and Gamble with its existing number of contenders in the market. It is with a
fundamental concern of exploring the prevalent condition of Procter and Gamble in terms of
competition. Porter's five force analyses with its five leading constituents is evident to assist in
this analysis as mentioned below-
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 Threat of new entrants- It is the foremost determinant of an organisation while referring
to frame an apt strategy of marketing in accordance to either expand into any other set of
market or diversify any existent product line (Pelaez, 2016). The threat of new entrant is
moderate for the cited entity where they are already dealing with a broad range of goods
and services that is evident to prevent any new venture to take part in its convergent
marketplace. Bargaining power of buyers- It is mainly in order to scrutinize the purchasing power of
the buyers associated with Procter and Gamble (Davenport, 2014). It is with a special
context of lower families who are more concerned about the pricing of goods and often
refers to buy unbranded goods that costs comparatively lower than Procter and Gamble. Bargaining power of suppliers- The bargaining power of suppliers in Procter and Gamble
is relatively lower where they tends to maintain an effective and a reciprocally
mutualistic relationship with their delegated number of suppliers (Ezrachi and Ioannidou,
2014). It is where Procter and Gamble together demands for high quality materials to
further commence their production function. This in turn helps them to create a reliable
set of relationship with their clients and users that is a foremost consideration of the
suppliers. As a result to which, this low bargaining power of suppliers is evident to
maintain a harmonious relationship with the venture (Nijssen and Frambach, 2001). Threat of substitute products- The threat of substitute product is moderately high for
Procter and Gamble where there exists a variety of similar range products in the market
(Hanssens and Pauwels, 2016). However, the offered quality of their proposed goods and
services do not corresponds with the substitute commodities in the market where they
together refers to provide value for money by creating a trustworthy affinity with their
consumers.
 Competitive rivalry- It is mainly in accordance to the prevalent context of competition in
the market where it is moderately low for Procter and Gamble where they are already
serving high quality products to their customers (Moore, 2015). Along with which, they
are together evident to carry a flexible attitude of merchandising their goods and services
with a practical sense of identifying the pertinent requisition of their clients and users.
This in turn aids them to fulfil their factual needs and demands where they frequently
modify their policies as per the driving forces in their convergent set of market.
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It is therefore on referring to the above five force model, there together exists yet another
conceptual theory to further depict some vibrant strategies for Procter and Gamble (Ghazzawi
and Palladini, 2014). This is in context to recommend some applicable work strategies that can
be adopted by Procter and Gamble via the below stated components of Porter's generic strategy
model- Differentiation- The strategy of differentiation is basically to refer the diversified
range of products in the market where it is referred to be one of the most contending
strategies undertaken by the enterprises. It is however in association to a prospective
procedure of innovation (Wolter, 2014). It is where Procter and Gamble is evident to
have a systematic research and development (R&D) segment that can largely assist
them in adoption of this particular strategy. It is also in accordance to serve a
qualitative product to the users with impelling strategies of sales and marketing that is
already possessed by the marketeers of Procter and Gamble.
 Cost leadership- It is yet another contending tool that can be undertaken by Procter
and Gamble in association to their discovered operational tact (Hoffman, Corbett,
Joglekar and Wells, 2014). By which, they can together refer to commence their
expansion program in the rural locations with low cost products with a greater sense
of dealing in cost-effective logistics.
 Focus- It is yet another pertinent strategy that is being adopted by the companies to
aim at the smaller segments of market in order to achieve a contending benefit in the
market (Thompson and et. al., 2013). It is however a very common strategy that is
usually adopted by the small scale industries who cannot survive into the long run
endurance. It is also recognised as niche strategy where the establishments are either
required to be convergent on either the tact of differentiation or cost leadership.
b) Considerations to look upon by Procter and Gamble look while creating Social Impact
A vibrant social impact is a prime consideration of almost all sort of organisations that
are operating in today's modern outlook of business. It is along with a rising state of globalisation
that is in turn refereeing to bring intense sense competition among the organisations that are
operating with an analogous concept of their work in a similar set of market (Jhatial, Cornelius
and Wallace, 2014). This is for instance to specify about some active contenders of Procter and
Gamble like Unilever where it together reflects an active participation in the industry of FMCG
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sector. It is therefore important to make a vital use of certain social impact by creating it with
some crucial factors of consideration as referred below- A precise impact on mission- It is referred to be a foremost consideration of Procter and
Gamble while considering the approach of creating social impact. It is therefore
important for them to establish a clear set of mission along with a pre-planned
formulation of actions to attain the same (Ihlen, 2015). It in turn postulates them to have a
meticulous business model with an execution plan to serve such products to the users that
tends to fulfil their prompt needs and demands. Potential set of leaders- It is yet another requisite outlook needed to be considered by
Procter and Gamble while referring to create a social impact on their undertaken set of
markets. In context to which, they should hereby tend to hire such potent leaders who
possess a both mission driven and business driven attitude by together referring to
manage the additives investment of funds (Amini and Bienstock, 2014). By which, they
can hereby refer to inspire and mobilise the entire team of individuals to find certain
innovative tact to create a social impact. Responsibility measures- It is mainly with reference to specify about such metrics of
work that are essential to measure the success of a business investment. It however exists
with a baffled consideration of distributing the responsibility to evaluate the obtained
resultants (Sato, 2016). It is therefore important for Procter and Gamble to have an
internal measuring system as a mean of attracting more number of investors who will
envision factual and concrete outcomes of their expended funds. Allied interests- It is yet another leading consideration for Procter and Gamble to operate
with an impelling structure of management where they have aligned set of interests for a
proper execution of their business (Wilson, 2013). This is in turn evident to give an
affirmative sense of the investors where their exhausted funds will consequently fulfil the
realistic organisational missions.
 Multifarious team of individuals- It is mainly in correspondence to refer the
organisational stakeholders of Procter and Gamble where they should reflect an
experienced outlook towards their carried set of work (Garcia and Greenwood, 2015).
This in turn will tend to reflect their proficiency in varied set of products and services
offered by them where Procter and Gamble is dealing into a broad range of commodities.
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This is basically on comparing the potency of Procter and Gamble with that to one of its
biggest rival in UK entitled as Unilever on referring to the market shares of both these firms for
the 3 pivotal years, as depicted below-
It is on discoursing upon the above represented figures that has clearly indicated the
market shares of both the companies named Unilever and Procter and Gamble where they are
facing an intense rivalry from one another (Giannetto, 2015). However, it has together been
envisioned over here that Procter and Gamble is at a much higher position that its undertaken
challenger named Unilever. It is where in the foremost year of 2009, Procter and Gamble has
acquired 22.82 million shares more than Unilever with another year hike of 19.23 in the year
2010 and 18.55 in 2011.
c) Social Activities in which Procter and Gamble should engage
This is basically to discuss upon the undertaken social activities of Procter and Gamble
where they are always referred to operate with a long term plan of sustainability. It is mainly in
accordance to develop eco- friendly products as a way of assuring quality life to the surrounding
bodies that involves both their employees and customers. The stipulated strategies of CSR in
Procter and Gamble are also positioned as one of their growth strategies where they are
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Illustration 1: Turnover since 2009 to 2011 Unilever vs Procter and
Gamble
(Source: Unilever v/s Procter & Gamble: War of the Worlds, 2013)

convergent towards fulfilling both their social responsibilities and environmental sustainability
(Rosenzweig, 2014). Wherein, on elaborating their social set of responsibilities, it can be stated
that the corporal origin of Procter and Gamble is based on three leading concepts of live, learn
and thrive where these terms themselves showcase their undertaken accountabilities towards the
society. It is however with a special approach towards the deprived set of children all around the
globe where they have given a specific name to this project entitled as Children's Safe Drinking
Water. This program is with a special context of defending the underprivileged children in the
society by together providing them a vital scope of enhancement in the field of education. For
which, they are together referring to access them with some providential scope of learning by
reaching around 315 million children's till now.
Apart from this, they have together delivered near about 2.9 billion litres of clean water
to them by together referring to prevent their diseases under 115 million days. Lastly, on
consolidating the entire set of data, it has been found that Procter and Gamble has till now saved
more than 14000 million lives of poor children's (Team, 2015). It is also in association to its
distinct set of markets where in its American set of markets, it has taken a prompt interest in
defending the mothers and their children's from an aggravated illness of tetanus. For which, a
substantial brand of Procter and Gamble named Pampers has referred to operate with UNICEF
and provided vaccines to the infected set of individuals.
It is where every sale of one packet Pamper a day has largely contributed in disbursing
the cost of vaccine that are further being donated to the targeted set of children's and mothers
(Lin-Hi and Müller, 2013). Additionally, Procter and Gamble has together aided America to
combat child hunger with a huge contribution of their grocery departments to provision free food
products to those families who are unable to provide such elementary needs to their children's.
All these undertaken measures of Procter and Gamble to fulfil their social set of responsibilities
has hereby shown a prosperous outlook of the venture where they are more successful in
benefiting their community people.
d) Procter and Gamble should pay attention to their wider social responsibilities
It is basically in accordance to a leading concern of varied proficient authors where they
have clearly stated that the companies like Procter and Gamble are nowadays required to work
with a greater sense of responsibilities. It is mainly with reference to their social obligations
towards the society in which they are operating their business that in turn has a broader sense of
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perceptibility. Social responsibilities are hereby referred to have more importance in the life of
people where it often tends to decide the buying decisions of the consumers (Jain and De Moya,
2013). It is resultantly termed as Corporate Social Responsibility (CSR) that is needed to be
carried out by the establishments like Procter and Gamble. Wherein, they are presently identified
to deal with certain intensified challenges that are a resultant cause of varied allegations made by
other distinct corporations as well as their consumers. This is for instance to state about one of
their illustrious claim where they have agreed to use considerable raw materials to build their
products.
It is with a specific context of their Pamper products where they hereby claimed to use
risk free materials in producing the cotton pads for infants by testing it on near about 20, 000
babies with a 70% success result. However, a large number of mothers have asserted it to be a
prime reason behind causing rashes and open sore to their babies. After which, it has together
been tested in Germany where the company was hereby detected to breach their claims of
product safety (Schrempf-Stirling and Palazzo, 2016). It was with a prime evidence of using a
toxicant matter named tributyltin (TBT) to manufacture their products with a quantity of 38.4 mg
in the pack of Pamper Baby Dry Mini where it is one of the most peril substance for not only
babies but also for adults. TBT is proven to harm the entire immune system and hormonal
balance of individuals who comes in contact to it. This has clearly envisioned the non-
contending areas of Procter and Gamble where they are required to maintain the decorum of their
word of mouth (WOM) marketing. It is where their expressed clause should not showcase a
denied expectation to the customers and should have an accurate outlook of the enterprise
towards serving them.
e) The way in which Procter and Gamble needs to balance the two pressures
A principle concern of balancing the basis social responsibilities of the organisations like
Procter and Gamble along with the wider concept of social responsibilities known as CSR is r
referred to create a non-tolerant pressure of work on them. However, it is together important to
operate as per the altering modes of today's contemporary set of business that is highly
demanding the participants to have a correspondent outlook towards their serving the clients.
There together exist some other vital reasons behind an increasing trend of CSR like a shrinking
role of government with greater demands of disclosure and increased interest of consumers in the
business (Curley and Noormohamed, 2014). Along with which, a growing relationship with the
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suppliers and a pressurised concern of the investors to combat the contending labour markets
together has an equivalent role in rising the trend of CSR. It is thus important for Procter and
Gamble to adopt a strategic outlook towards activating the need base association of CSR in their
business where there exists total two leading type of strategies to be applied by them-
 Short term strategies:
◦ A structural format of CSR is hereby required to be maintained by the authoritative
officials of Procter and Gamble with a supportive outlook of their CEO in it (Morgan,
2015). This structural framework will hereby consists of the position statement of
CSR, its audit report and annual fiscal reports, etc.
◦ Creating awareness in the employees with a prompt method of communication where
Procter and Gamble will refer to implicate a top down commitment to declare the
undertaken tactics of CSR (Bhattacharya and Kaursar, 2016). It is with a prior
association of their adopted organisational culture where they can also refer to use
some leading measures of rewarding to create a pivotal sense of carrying out the
projected responsibilities in their workers.
 Medium to long term strategies:
◦ A prompt intervention of all organisational stakeholders is hereby envisioned to be a
vital concern while designing the strategies of CSR (Procter & Gamble Co’s, 2017).
It is where Procter and Gamble should actively engage their stakeholders with a
major consent of their investors to shift their focus from financial reporting to societal
relationship.
◦ A communication strategy guideline can together be adopted by Procter and Gamble
where they will hereby refer to make realistic commitments by allowing diversity and
whistle blowing policies (Lin-Hi and Müller, 2013). This will together necessitates
them to provide ethical training to the employees by together incorporating ethical
consent of decision making in them.
f) Investigating in the theory of CSR, Citizenship, philanthropy, social impact
CSR is a specific theory that affirms the corporations like Procter and Gamble with
certain corporeal accountabilities that are basically related to the economic, ethical, legal, and
philanthropic obligations. Herein, they are then responsible to formulate a triple bottom form that
seeks the sustainability in their economic, environmental and social spheres (Zimmermann,
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Gomez, Probst and Raisch, 2014). It is therefore on discoursing upon the citizenship or legal
responsibilities of Procter and Gamble in association to one of their pyramidal framework of
CSR, it has been found that these are the duties placed by law. It is along with yet another
assurance of profitability that has been achieved with a clear referral to their legislative norms
and standards. It is especially in accordance to the applied theory of CSR where these lawful
responsibilities range from labour law to environmental laws, etc.
Wherein, on referring to the philanthropic theory of CSR, this reports those
responsibilities of Procter and Gamble that reaches beyond the elementary requirements of the
venture (Amini and Bienstock, 2014). It is therefore in accordance to benefit the societal
community by donating services and funds to charitable organisations and involving in projects
to assist the environment, etc. Herein, the social impact of CSR is directly associated with the
stability of Procter and Gamble with a prime concern of being socially responsible with a need
base outlook towards stability. It is with another principle association of customer retention
where the business clients are now a days more interested to operate with a socially responsible
business.
Discussion
This is on discussing upon the above carried expedition of CSR by Procter and Gamble
where they are hereby referred to carry a more sustainable outlook towards serving and
benefiting their community people with it. It is along with some major set of challenges that are
often being faced by the cited firm while conducting their liable measures. It is with some
fundamental set of stakeholders in Procter and Gamble with a leading existence of their
customers, suppliers and governmental bodies along with the pressure groups and their
diversified set of employees who are employed by them (Blakeman, 2007). The social
responsibilities of Procter and Gamble are at a quite high position where their organisational
values, intents and principles can clearly reflect their strategic context of planning to operate
with a socially responsible attitude. It is along with a sustainable insertion of their efforts that can
be precisely recognised by their carried set of actions. It is mainly in accordance to the five
implicit strategies of CSR undertaken by Procter and Gamble where it is all about their offered
set of products, carried operations, social accountability and their stakeholders like employees
and consumers, etc.
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It is with an assistive tool of silent and shadow account that largely contributes the firm to
critically analyse the undertaken approaches of the companies like Procter and Gamble in order
to attempt their social set of responsibilities. It is thereby on relating it with the above considered
strategies of Procter and Gamble where innovation is a leading matter of concern in their
formulated commodities where customers are referred to be their foremost asset (Wilson, 2013).
They were hereby proven to be involved in a fraudulent act when their Pamper's baby product
was tested in Germany and discovered some hazardous chemical substances in it. On referring to
the claimed social responsibilities of Procter and Gamble, they are hereby referred to provide a
healthy lifestyle to their affiliated consumers by improving their lives. For which, they are
involved in provisioning basic necessities to the deprived set of population by involving into
some effective measures of vaccinations, etc. However, they are hereby discovered to involve
into some fallacious activities where one of their product named Vicks Nasal Spray was found to
be fully contaminated with bacteria.
CONCLUSION
The above report has summarised the CSR activities of Procter and Gamble where it has
primarily initiated with a comparative analysis of its undertaken activities with that to its existent
number of contenders. Into which, it has been found that Procter and Gamble is working hard to
fulfil their varied social responsibilities with a significant improvement in their projected
approach. They are together found to deal with certain number of challenges along with some
major criticisms from varied set of users (Trout, 2015). Some vital environmental issues with
some discriminatory allegations and global regulatory laws to outreach their international set of
markets are such major issues faced by them. Although, they are constantly striving to attain a
prosperous outlook towards serving their consumers all around the world. The above
summarised points have together professed some vital recommendations for the quoted entity
where they are suggested to defend and esteem the privacy consent of all their customers.
It is along with yet another major suggestion of ensuring a safer production and
packaging of their proposed commodities. Moreover, they should together diminish any
pessimistic impact of their products on the environment with less wastage of resources. With
reference to which, they should hereby fulfil the legislative rules of the environment by
continually assessing their adopted technical measures to meet a progressive set of goals
(Winston and Weinstein, 2016). Herein, they should together assure a proper transmission of
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information to all their stakeholders by providing a correct set of information to them. It is
basically to create a prior sense of work in their employees where they should hereby feel to
attempt their social responsibilities in the routine work with a special outlook towards
undertaking the procedure of research and development (R&D).
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