International Marketing Strategy Report

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AI Summary
This report analyzes Procter & Gamble's (P&G) international marketing strategy for its Pampers brand in the UK and India. It begins with an executive summary outlining the brand's performance and the report's key findings. A PESTLE analysis compares the macro-environmental factors in both countries, followed by a Porter's Five Forces analysis of the competitive landscape. A SWOT analysis identifies Pampers' strengths, weaknesses, opportunities, and threats in each market. The report then details the segmentation, targeting, and positioning (STP) strategies employed by P&G, along with a breakdown of the marketing mix (7Ps) used in each country. Statistical graphs illustrate Pampers' market share and growth trends. Finally, the report concludes with recommendations for enhancing P&G's marketing efforts, including suggestions for improved promotional strategies, integrated marketing communications, and leveraging social media. The report utilizes various academic sources to support its analysis and conclusions.
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International Marketing Strategy
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Executive Summary
P&G or Procter and Gambler is a global organization which produces various kinds of products
for satisfying the needs, demands and preferences of the customers in each and every aspects of
the life. One of the most important products is the Pampers which is created for satisfying the
needs. The brand performs well in both the local UK market and international Indian market. The
firm is also able to improve its performance by following the PESTLE, Porter’s five forces and
SWOT analysis. The brand performs various kinds of marketing and promotional activities based
on the segmentation, targeting and positioning in both the countries. The study is also to provide
proper recommendations so that the brand and the product can perform well by using various
promotional activities.
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Table of Contents
Executive Summary..........................................................................................................................2
Introduction......................................................................................................................................4
Objectives.........................................................................................................................................5
Macro or Environmental Analysis of two countries.........................................................................5
..........................................................................................................................................................7
Micro or Industry Analysis...............................................................................................................7
Marketing Strategy: SWOT..............................................................................................................9
Marketing Strategy: STP................................................................................................................11
Marketing Strategy Analysis: Promotional Activities....................................................................13
Statistical graphs and explanation on the usage of Pampers products in UK and India................17
Conclusion and Recommendations................................................................................................18
References......................................................................................................................................20
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Introduction
Marketing is an important activity with the help of which an organization is able to accomplish
their targets and goals within the stipulated time by using various kinds of strategies and skills.
various kinds of advertising, promotional techniques are used to develop and innovate the
products and the services resulting in retaining and gaining more customers. The Procter and
Gamble Company also famous as P&G is a global organization which not only produces various
kinds of consumer products but is also successfully in satisfying the needs, demands and
preferences of the customers. The firm was established in the year 1837 by William Procter and
James Gamble at Ohio, an important place of US. Various product segments of P&G
organization are such as personal care, beauty, health care, fabric and home care, family and baby
products. Pampers is one of the most important baby care products of the organization which is
used to satisfy the needs and preferences of the babies and the toddlers. Various kinds of
marketing techniques are used by the organization to perform well and gain success in the local
and the international market. So, the study is to identify, understand and critically analyse the
various marketing activities used by P&G for the Pampers product in both the local market that is
UK as well as in the international market that is India.
Objectives
The main objectives of the report are—
1. To compare and analyse the PESTLE of both the UK and India.
2. To compare and analyse the PORTER’S FIVE FORCES of Pampers brand in UK and
India
3. To understand and analyse the STP and promotional activities of the brand Pampers.
4. To recommended various marketing activities that can be used to gain success in both
the local as well as in the international market.
Macro or Environmental Analysis of two countries
PESTLE Analysis of UK PESTLE Analysis of India
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Political Political
UK has a good and stable political
environment. The firms have the
opportunities to perform as the powers are
divided equally among both the local and
the national governments. The government
is also proactive in nature helping the
organizations to improve their performance.
So, Pampers can perform well by following
the government rules properly.
India is one of the largest democracies of
the world, so the organizations have to
follow the governmental policies. It has a
stable political environment but in presence
of various parties sometimes the
organizations may have to face various
problems too. So, Pampers have to develop
better strategies resulting in better business
environment
Economic Economic
One of the strongest and diversified
economies of the world due to increase in
the foreign direct investment and free
market. However, the exit from Brexit can
harm the performance of the Pampers
making it difficult to hire the right talents
easily.
The economy of the country is also strong.
The GDP growth rate is improving at a
steady speed. So, Pampers have good
opportunity to expand its business, perform
well and earn better revenues and profits by
satisfying the needs of the people.
Social Social
various kinds of people irrespective of caste,
creed, religion live together. But a certain
group of people such as upper class and
upper middle-class people may use the
products helping to gain good success.
(Akaka, Vargo and Lusch, 2013).
Since various kinds of people irrespective of
caste, creed, age, language culture etc. lives
in India. So, it is easier for Pampers to gain
success by gaining better opportunities in
the new market.
Technological Technological
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UK is technologically developed. So, it is
beneficial for Pampers to make better
quality products in less cost
India is technologically developing. So,
Pampers have to invest a good amount of
money in technologies for satisfying the
needs of the people (Baker, 2014).
Legal Legal
The legal rules of the country are strict but
not complex in nature making it easier for
the firm to perform well.
The legal rules are well developed. So,
Pampers have to maintain and follow all the
legal rules for performing nicely in India
Environmental Environmental
The environmental policies of the country
motivate the Pampers to work for the
benefit of the society and the people as a
whole (Samaha, Beck and Palmatier, 2014).
In India, the organizations such as Pampers
have to follow the ideas of recycling so that
the products can be beneficial for both the
environment and the people as a whole.
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Figure 1: PESTLE Analysis
(Source: Samaha, Beck and Palmatier, 2014).
So, it can be critically analysed that the business environment of both the countries plays an
important role in the better growth and performance of the firm. The reason is that in both the
India and UK, the organization get better opportunity to perform well but the presence of various
political bodies and the sudden change in the economy can harm the performance of the firm.
Micro or Industry Analysis
The management of P&G uses various kinds of strategies and techniques by analysing the
business environment making it easier for them to perform efficiently and effectively by
accepting and implementing new changes.
Porter’s five forces of Pampers in UK Porter’s five forces of Pampers in India
Bargaining Power of the Buyer Bargaining Power of the Buyer
The bargaining power of the buyer is high
as the customers can change their products
and brands based on the market trends.
The bargaining power of the buyer is also
high in India as the customers can change
the products based on the performance and
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the benefits of the product usage
Bargaining Power of the Supplier Bargaining Power of the Supplier
The power of the suppliers is medium as
P&G has the opportunity to buy and
manufacture products efficiently (Czinkota
and Ronkainen, 2013).
The power of the suppliers is low as the
developed products are sold in the Indian
market. It does not depend on
manufacturers.
Threat of the Substitute Threat of the Substitute
It is medium as the firm is already well
established and has developed a good
position for itself in the market
It is high as people of different social strata
lives in India, so they want to purchase the
same kind of product in less price.
Threat of the new Entrant Threat of the new Entrant
It is low as good amount of money and
better technology are required. Since the
country is technologically developed so it is
difficult to produce innovative things.
It is low making it difficult for the
companies to enter and perform well in
absence of better technologies and money
(Griffith and Hoppner, 2013).
Competitive Rivalry Competitive Rivalry
It is high as both the national as well as the
international brands produce similar kinds
of products with better benefits for
satisfying the people.
It is high as established brands such as
Johnson’s and Johnson’s, Huggies etc. also
has good position in the market by giving
their best.
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Figure 2: Porter's Five Forces
(Source: Leonidou, Katsikeas, Fotiadis and Christodoulides, 2013)
Since, the industrial analysis is similar in both the countries so it can be critically analysed that
the firm should improve its strategies and techniques based on which it will be able to perform
well and gain good success in the competitive market. The firm should use various kinds of
strategies and techniques more effectively making it easier to accomplish the targets successfully.
Marketing Strategy: SWOT
SWOT Analysis of Pampers in UK SWOT Analysis of Pampers in India
Strengths Strengths
Has good customer base with the help of
which the firm is able to compete
successfully in the local market.
Better use of modern and innovative
technologies resulting in better quality of
products (Leonidou, Katsikeas, Fotiadis and
Also has strong customer base from
different strata of the society resulting in
performing well in the mew market.
The availability of better technology also
helps to develop good quality of products
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Christodoulides, 2013)
The position and share of the products are
good among its competitor.
and services.
The firm is also able to create a good place
and recognition for itself in the market.
Weakness Weakness
In UK, the brand mainly focusses on the
present customers and tries to improve the
products according to their need and
preferences. So, it loses potential customers.
The competition is aggressive in the local
market
Since people are different from one another
so it is difficult to satisfy the needs of the
customers easily. Huge amount of money is
also spent for advertisements and
promotions in different languages.
Opportunities Opportunities
Has good opportunity to reach and retain
more customers resulting in increasing sales
and revenue.
To perform well by following the modern
changing trends of the market (Leonidou,
Leonidou, Fotiadis and Zeriti, 2013)
Pampers has a good opportunity to perform
well by following various customs and
cultures of the country.
To conduct CSR activities and reach more
customers easily resulting in increasing
sales and revenue of the firm.
Threats Threats
The sudden change in the business trends
motivates the firm to improve its strategies.
Has to compete successfully in the pricing
techniques in such a way that it can satisfy
the customers easily.
Various kinds of substitute products are
available in the India who are performing
well in the market.
The behaviour, need and performance of the
customers can change at any point of time
due to which the firm has to suffer losses.
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Figure 3:SWOT Analysis
(Source: Papadopoulos and Heslop, 2014).
It can also be critically analysed that the better identification and improvement of the weaknesses
and threats can help the firm to perform well. It will also be easier for the firm to analyse,
perform and gain good opportunities in both the local and the international market resulting in
gaining good success and sustainability in the international market.
Marketing Strategy: STP
In the both the local as well as in the international market that is UK and India, P&G and its
product Pampers is able to perform well by using various advertising and promotional
techniques.
STP of UK STP of India
Segmentation Segmentation
The demographic, psychographic and
behavioural segmentation techniques are
In India, demographic, geographic,
psychographic as well as behavioural
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used by the P&G for Pampers brand as most
of the people are of higher class and earn
good income. So, Pampers have to use
different techniques to attract and retain the
customers for a longer period of time.
2. In UK, mainly premium pricing strategy
is used as most of the people are rich.
(Okazaki and Taylor, 2013)
segmentation are used as India has various
kinds of culture, tradition, customs and
people are also different from one another.
People belonging to different social groups
uses Pampers so the prices are also of
different types so as to satisfy and target
new customers easily.
2. people have different beliefs about the
products
Targeting Targeting
In UK, the women of middle- and upper-
class women are the target customers. The
health professionals are also important so
the firm
The women of different age groups
belonging to various professionals along
with the health professionals are the main
target customers of the brand.
Positioning Positioning
Undifferentiated technique is used to makes
its position strong in the local UK market.
It easier for the firm to provide better
products. The behaviour of the buyer also
affects the performance of the firm. It is
means that if the customers are satisfied,
they will buy the products again and again.
Differentiated technique is used to develop a
good position for itself in the market
In India, the position of the pampers
depends on the performance of its product
lines. People of different social strata stays
in India, so different strategies are used
(Paliwoda and Thomas, 2013).
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