Business Strategy: P&G Marketing Strategy Development Report

This report provides an in-depth analysis of Procter & Gamble's (P&G) marketing strategies, focusing on their approach to consumer goods and business operations. It begins with an overview of P&G's mission, values, and global presence, highlighting their commitment to quality and consumer satisfaction. The report then delves into P&G's existing business plans, exploring strategies related to consumers, suppliers, and environmental/social responsibilities. A significant portion of the report is dedicated to the launch of a new product, "packaged ready to eat," outlining projected market share, sales potential, competitive analysis, organizational structure, and financial requirements. Various marketing tools and techniques are discussed to support the new product's launch, including distribution strategies and personnel management. The report aims to elucidate the marketing strategies adopted by P&G to strengthen customer relationships and achieve greater profitability, making it a valuable resource for understanding business development and marketing practices.

Business Strategy

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 2............................................................................................................................................3
Detailed report for the development of the marketing strategy...................................................3
Appropriate tools and techniques to develop a marketing plan.................................................11
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
In the existing competitive and the volatile market place, the business organization's
profitability and the breadth of the customer base depends on the efficiency of the strategies and
policies framed by the management. To consolidate larger stream of customer with the
organization the suitable and appropriate marketing strategy is adopted to launch and position in
different market segments. With the vision to become the customer's first choice by providing
them the quality services at affordable price, the organization comes up with the effectual
strategies and management. The management frames strategies after undergoing the complete
internal and external analysis of the business scenario (Jackson, 2012). The formulation of
strategies inculcates the various components such as current business situation, financial features
and requirements, market strategies, projected market share, pricing, position new business, sales
potential, promotion plan, creating competitive grid and designing development plan.
The report is prepared to elucidate the marketing strategies adopted by the organization to
make the strong relational constructs with the customers and earn greater profitability. For that
purpose the American multinational consumer goods company Procter and Gamble co. is taken
into account. Head quartered at Cincinnati Ohio, the organization provides the branded products
and services is available in more than 180 countries (Grant, 2010). The existing business plans
and strategies of the P & G is reviewed. Further, the complete scenario for the launch of new
product “packaged ready to eat” is discussed which inculcates the management strategies and
framework for integrated marketing plan. Also, with the help of certain tools and techniques the
plan is promoted and ways in which the products are innovative and new are explained.
TASK 2
Detailed report for the development of the marketing strategy
P & G is providing the quality products of the recognized brands to the customers around
the globe in 180 countries. The group's mission is to give the superior range of products to
improve the customer's lives at every stratum of their personal consumption and the household
works. P & G is recognized for the quality to prosper the lives of their consumer by integrating
the efforts of shareholder, employees, colleagues and communities (Kourdi, 2010). It has
distinguished leadership sales, value creation and profit margin but not compromise the quality
of products.
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With well known and trusted brands globally, the group has its strong in varied segments
of market with its operation in different segments like beauty, grooming, fabric care & home
care, baby care, health care and pet care. P & G has been collaborated with the well known and
trusted brands globally such as Downy, Ariel, Pantene, Whisper, Olay, Pampers are among the
fundamental pillars (Mama and Kruger, 2012).
Enlisted at the apex place of the ranking for the “Global top companies for leaders” and
has also occupied the place in top fifteen for the world's most admired companies list. With the
superior understanding of the needs of the consumers the organization has established the
prominent position in the market place. P & G group are known as the good corporate citizens.
They build the winning brand equities by creating and building the distinguished products,
packaging and concepts (Motwani, Subramanian and Gopalakrishna, 2005). It has also
maintained the strong relational constructs with the customers and suppliers. Established in 1837,
P & G touches and improves the lives of 4.4 Billion people around the Globe. With about 300
brands, P&G is the family of 1,2700 employees working under the chairmanship of A. G. Lafley.
Having 28 global technical centers with the yearly sales turnover of about $82.559 million. With
operations in 80 countries, the products are available in 180 countries.
Business plans and strategies of the organization
Possessing the unique culture with the strong foundation of its purpose, values and
principles has become successful in capturing the interest and wining the trusts of large stream of
consumer. The group has experiences the transition in different phases but endured these values
throughout the evolution contributing positively in the lives of people (Basili and et.al., 2013).
The management of the organization follows certain plans and strategies in order to pursue the
mission and vision. It fulfills all the responsibilities with respect to all its stakeholders. The
strategies used by the organization is explained with the following categorization. Consumers: In order to improve the lives of the consumers at every stratum of the
everyday work, the organization shapes the tone of its working and makes the positive
contribution. The organization comes up with the varied range of products in different
segments to satiate the needs of their customers. The group posses the strong foundation
of the integrity, the principles and values. This reflects in all the work, process adopted
and decision taken by them (Zott, Amit and Massa, 2011). As they are very honest in
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promoting their goods and advocating proposals as they as data-based and empirically
proved. Suppliers: Adopting the total product model, the group works in integration horizontally
and vertically with the reputed and trusted brands around the globe. The group maintain
the superior relationship with the all the other companions who contribute the
organization in fulfilling the corporate missions and goals (Crumpacker and Crumpacker,
2007).
The values and the principles
The organization works with full integrity and honesty and makes the continuous efforts to
improve and win the prestigious place in the market place. The organization grows their ventures
by fulfilling their responsibilities towards the environment, society and the consumers. It is
explained on different grounds in the following manner.
1. Environmental responsibility: Understanding the responsibility towards the environment,
the organization use the Eco-friendly raw materials and the sustainable methods to
implement their processes.
 The group power their plants with the 100% renewable energy to minimize the waste.
 The recycling of the products is the key component of the strategy to be adopted.
 The organization intends to design the products that along with delighting the consumers
also helps in the conservation of resources in the significant manner (Tokatli, Wrigley
and Kizilgün, 2008).
2. Social responsibilities: The organization are commitment to make the social investments.
The p&g group makes the sincere and impact-full efforts to contribute in improving the
conditions of the children in need by giving them the healthy start, accessing to the
education and enable them to build the important skills in them.
In order to support introduction of the new product the following management strategy is
incorporated. The new product “packaged ready to use” is being launched by the organization P
& G. With the slight diversion from the ongoing operation in the conventional range of consumer
and personal care goods, the new product launched will encompass into it the instant ready to eat
food products such as muffins, sandwiches, burgers and hot dogs. With this range of products the
organization can widen its operational base (Chapman, 2005). The strategy has been elucidated
by incorporating the following aspects:
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1. Projected market share: The company has been operating in the varied section of the
consumer and personal goods. So far company has not entered into the food and
beverages section significantly. The group has been limited to some snacks. With the
launch of new range of products the company can broaden the market share and will
increase the sales.
 Increasing the number of users: With the launch of new product range the stream of
customer of the organization get widened with the addition of new users. The company
the considerable amount of scope to establish its position in the market in this particular
sector (Mama and Kruger, 2012).
 Conversion of users from the total feasible market: Going through the different stages of
growth such the early pioneers users, majority users, permanent users. Evolving in such
manner, the company grows it customers and users.
2. Sales and revenue potential: So far company has been successful in building the trust and
confidence among the customers due to the authenticity of the quality and the affordable
pricing. The model is prepared by considering the sales and revenue potential. In the
previous years the revenue of the organization was $75,00000. With the addition of new
segment in the organization, the company expects the increment in the revenue up-to
$85,00000. The sales has been projected by using the equation (T)(A)= S (Basili and
et.al., 2013).
3. Competitive Analysis:
The fundamental step to enter in the new market segment is the complete analysis of the internal
and external scenario of the organization. This includes considering the following aspects:
 Reasons behind the success and the failure of the firms: Identifying the promoting and the
inhibiting factors in the market helps to come up with the effectual strategy (Boehm and
Turner, 2005). The analysis of the market and industry segment is made the inferences
are made that the companies getting failure in the market is due to the low standards of
quality, customer dissatisfaction of different grounds, lack of efficiency in the operational
management.
 Prime customers motivators: The organization P&G maintaining the values and integral
values will provide their customers the better quality products. The customers prime
focus on the food products is on the hygiene and the purity. The company will collaborate
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with the trusted and well known dealers providing the fresh and lab tested foods (Salem
Khalifa, 2012).
4. Organizational structure: The new segment is launched with slightly new organizational
structure inculcating few more departments such as research and development department
other than the basic conventional areas like finance, marketing & Sales, administration.
5. Calculating overhead expenses: The strategy building of the new segment includes the
calculation of the overhead expenses incurred in the organization. This includes travel,
maintenance and repair, equipment leases, rent, advertisement & promotion, supplies,
utilities, packaging and shipping, insurance, loan payments, depreciation and professional
services (Crumpacker and Crumpacker, 2007).
6. Capital requirements: The fundamental requirement to start a new venture is the finances.
The group has established the goodwill in the market due to its profound quality and
trusted attitude. The finances, investment institutes and the banks are ready to provide the
loans on the low interest rates to the organization.
7. Personnel: To operate the business feasible, the efficiency of the personal appointed and
placed in the venture plays an important role. To hire the capable employees in the
organization, the rigorous recruitment is conducted by analyzing the required qualities
and efficiencies. By identifying the strengths and capabilities they are placed in the
respective departments (Campbell and Rahman, 2010).
8. Distribution: The distribution and the logistic system plays the vital role in this segment
of business. For the distribution to the larger scale of customers, the different ways:
 Direct sales
 Through representatives: By dividing the sales of products in different agencies.
 At whole sale distributors Retail distributors
New product launched in the P & G group
The organization has been confined to the limited segments of the market. It has divided
the products into two ranges beauty & grooming and the household care. The major competitors
of the organization are Johnson & Johnson and Kimberly-Clark. Diverting the business from the
conventional product line, the organization is launching the new range of products in the market
that is the instant “Ready to use” meals (Olson, Slater and Hult, 2005).
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Range and variety: The new range of products include the wide variety of the packed ready
meals such as in savors there are burgers, sandwiches, hot dogs and in sweeteners there are
muffins, jam rolls, fruit breads. Apart from this the company is also launching the regular
products in everyday use brown breads.
In the categories of products the company is coming with the distinguished range in all of them.
Sand witches: The varieties includes simple vegetable sandwich, cottage cheese sandwich and
chocolate sandwich. All these varieties are further available in different flours such as wheat,
oats and whole wheat (Motwani, Subramanian and Gopalakrishna, 2005).
Burgers and Hotdogs: The savors in this category are available with two varieties in each. Simple
vegetable and cheese.
Sweeteners: The different varieties of the sweeteners are available such as the jam rolls, fruit
breads of two types simple and chocolate; muffins of different flavors such as strawberry, mango
and chocolate muffins are available.
Pricing: The products are launched with the varied range of prices. The prices are kept according
to the product types and the sub categories. That is the sandwiches with the wholegrain and oats
flours are kept with high prices as compared to the simple wheat flour breads. The prices of the
products are kept competitive (Hills and Thom, 2005).
Availability: The products will be made available in all the 180 countries where the company is
in operation. The products will be made available at all the supermarket stores, retail stores, and
the P&G stores. Apart from the availability at the conventional stores and shops, the products
can also be procured through online means. The expiry of the product is after 7 days from the
packaging. Hence, the distant deliveries of the product is also available.
Target customers: The product launched by the P & G group target the consumers who prefer to
eat the ready to eat meals due to less availability of time. People prefer the healthy eating and
don't compromise with the health (Galpin and Whittington, 2012). Considering that point in
consideration the company is launching the products in different flours and types.
Integrated marketing plan for the launch of new product in market
With the above management strategy the integrated marketing plan is framed by taking
into consideration the different segments of the promotion plan and other segments. In order to
consolidate the large number of the customers with the business organization, the effectual
marketing strategy is adopted. The plan prepared in explained below:
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 Advertising: In order to increase the awareness about the launching of new product in the
market. The promotion will be done on various grounds. Different methods of promotion
is being used. The most effectual method, viral and digital marketing is used to capture
the attention of the large number of the public (Brown, 2013).
 Packaging: With the attractive and the precise packaging the sales is increased to the
large extent. Further, the people are conscious about the composition and ingredients
used in the food products. By describing and detailing the actual composition, the trust
and can be build between the organization and the consumers. The organization intends
to enter the market with the different products going against the conventional ways and
process. The prime focus will be on the hygiene of the product. Further, the different
range of diet products with be launched such as the sandwiches using the brown bread or
the oats bread, burgers made from the wholegrain flour and similar products which will
target the health conscious customers (Adner and Levinthal, 2004).
 Public relations: In order to increase the business to the large extent, building relations is
the central part. The relational constructs between the customers and supplier and the
organization play the crucial role in the profitability.
 Sales promotion: With the help of the different methods, the sales can be promoted in the
significant manner. The ways such as the promotional programs, coupons, special sales,
coupons and contests, the sales can be enhanced considerably.
 Personal sales: With the help of personal sales the direct response campaigning can be
promoted. This helps in building the strong relationship between the customers and
organization (Zott, Amit and Massa, 2011). This helps the customers to know the product
and services more intimately as through these methods the sales person makes the better
understanding of the product to the consumers by explaining the ingredients and the
composition.
Considering the above components of the promotion plan, the integrated marketing plan
is prepared by inculcating the following segments.
 Research, strategy and planning: This segment refers to the consideration of all the
factors. With the proper and the intensive research made in the area, the plan is prepared
(Porter, 2008). With the research made, some inferences can be made. Such as the
existing brands which are successful in the launching of products has come up with the
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effectual strategy in marketing. With the proper showcasing of the offerings, the
organization build the establishment in the market place. To brand and deliver the
effective message with respect to the launch of ready to use meals the right channels are
taken into considerations. Further, the proper research is made with respect to the ready
to use meals. P&g group delivers the products offered by some other brands (Tokatli,
Wrigley and Kizilgün, 2008). Hence, to check the authenticity and the interrelationship
between the motives and the offerings by this organization, the products of the companies
are checked intensely and then the trusted brand is selected for the purpose.
 Branding and creative: The key pillar of the marketing segment is the team which
performs the precise and creative branding of the products. The catalyst team has
prepared the effective logo as it is the first thing that capture the attention of public. The
organization P & G group has its own logo but the new product is launched with the new
logo describing the values and the motto. Further, promotion through the online ads,
prints ads and the television promotions proves very helpful (Miltenburg, 2005).
 Web strategy: The widened use of the internet has opened the new way of promotion of
the products to the larger number of people in the more impact-full way. The increased
scope of promotion on the virtual platform has provided many ways of promotion such as
advertisements on the social media platforms, connecting people through blogging,
article publication on the widely used platforms and only press releases. Also, by
building the user friendly website and
 Referral marketing: Referral marketing is the effectual marketing tool adopted by the
marketeers. In this the promotion is done through the past and the long term clients of the
organization. With the help of structured client management program, the product is
endorsed to the long term clients. These promoters are known as the mini marketeers.
The goodwill and trust build by the group enables them to increase the word to mouth
promotion of the product in the market (Slack, 2015). This involves the cross-selling ,
nurturing and up-selling the existing customer.
 PR and reputation management: This is the method adopted to directly connect with the
consumers through personal representative. With the help of these the personal
representatives showcase the offering of the organization. This is proceeded with the help
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of the virtual platform. That is the websites such as the linkedin helps to build the
connections with the suppliers and the organizations providing these products.
Appropriate tools and techniques to develop a marketing plan
As earlier in the report it has been discussed that P & G is launching their new product
named READY TO EAT products which will include ready food material like Muffins,
sandwiches, burgers and hot dogs which will satisfy the hunger of customers at any moment.
Further, in order to make the mentioned product successful, cited company has to implement a
marketing plan by using different tools and techniques which will judge the effectiveness of the
product in the UK market (Eigenhuis and Dijk, 2007).
Further, P&G in order to develop an effective marketing plan can use SWOT analysis as
an ice breaker where company will come to know strength and opportunities for launching new
product. In relation to this, strength for READY TO EAT product will be the brand name under
which they will be getting served as mentioned company having their operation throughout the
world and their products are mostly demanded by the customers. Cost of the mentioned product
will be as low as possible which will satisfy the needs of even lower income individual. This is
generally developed to increase more of the market share and also to give a competitive
advantage over their major competitors namely JOHNSON & JOHNSON, KIMBERLY-CLARK
CORPORATION, Unilever, etc. By taking new ingredients in making up of the meal will be a
Unique Selling Propositions (USP) for the cited firm (Flor and Oltra, 2010).
Further, as industry is working in a competitive environment, so SWOT analysis will
play a crucial role in order to identify the effectiveness of the newly launched product. Further,
this analysis will also help P&G to know the opportunities which is generally existing in the
market. Moreover, firm will also able to manage and eliminates the threats of the newly launched
products otherwise sale of the new product will affect and company will not be able to earn
sufficient amount of return in coming time period.
Moreover, after conducting the SWOT, cited firm will see other aspect and will focus on
conducting macro environmental analysis of the product. Under this, cited firm will focus on
PESTEL analysis and mentioned company will analyze all the external factors which might
impact the sale and revenue of the product. Under this, firm will have its core emphasis on
political, economic, socio- culture and technological factors. This will generally help the cited
firm to make changes as per the identification of the relevant factors and with the help of it P&G
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will take the advantage of the opportunities which are existing in the environment for newly
launched product (Grant, 2010).
Further, by scanning the environment firm will come to know the opportunities which
they have in launching the product and they are also confined and aware of the major threats
which they will be facing in coming time period. Moreover, PEST analysis will also help P&G to
work and move ahead as per the world is moving and they have to make necessary changes in
the READY TO EAT products as organization come to know the changing customers perception
towards the product. Further, with the help of political and legal factors, company comes to
know the legal boundations and the law and acts which they have to follow in order to achieve
the hygienic advantage. Violation of any act or law can affect the goodwill of the mentioned
company.
However, for applying these PESTLE analysis, a team of technical experts need to be
there who can have brainstorming sessions regarding what must be required and what not. With
the help of it, company will be able to reach on the best of the decision and this will lead the
cited firm to have a competitive advantage over the other potential competitors.
Moreover, there is one more technique which can be used by P&G and it is Porter's Five
Forces tool. This tool is genuinely simple and but also powerful in order to understand the
capability of the business venture to launch the product. Further, it is considered as a helpful tool
for the venture because it helps organization to understand the strength of their competitive
position and also the strength of the position in which company is planning to move. Moreover,
for the launching of new product, this will help the aforesaid company to identify the power lies
in the companies hand and it also help the firm to take the wrong initiative. In this context, for
READY TO EAT products, cited firm will focus on 5 major factors relating to the products and
these are Competitive rivalry, threats of substitute product, threat of new entry. Bargaining
power of suppliers and bargaining power of buyer (Hagel and Brown, 2005). This tool
implements the likeliness of the particular product in coming time period and also evaluates the
opportunity which P&G have in order to gain the competitive advantage.
New and innovative concepts used for the plans implementation
The fate of the organization and the new launching of the product is decided by the way it
is launched in the market. In order to compete with the good strength and abilities with the
competitor, the organizations are required to enter with the innovative and new methods of
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