International Marketing Strategy Report: P&G Expansion

This report presents an analysis of P&G's international marketing strategy, focusing on a new market offering in India. It begins with an overview of the beard moisturizer market, highlighting key players and market trends. The core of the analysis utilizes Porter's Five Forces to assess the competitive landscape, examining the bargaining power of suppliers and customers, the threat of substitutes and new entrants, and the intensity of rivalry. Furthermore, a PEST analysis is conducted to evaluate the political, economic, social, and technological factors influencing P&G's market entry strategy. The political factors include tax policies and regulations, while the economic factors consider inflation and purchasing power. Social factors such as health consciousness are also assessed. Finally, the report emphasizes the importance of research and development in maintaining a competitive edge in the market. The report concludes with a set of references that support the analysis.

p&g
International Marketing Strategy
12/7/2018

Porter 5 Force Analysis
Porter Force Overview Degree
Bargaining Power of
Customer
Today, the beard moisturizer
products for men have
become a trend in the market,
which grab numerous
customers. There are firms
operating in the industry such
as Ustraa Beard Growth Oil,
Bryl Cream Beard Oil, etc.
(India Mart, 2018). This
situation offers different
options of the products to the
customers.
High
Bargaining Power of
Supplier
The number of suppliers in
this market is limited due to
limited awareness among
people. This reflects that the
switching cost for the
companies is high.
High
Threat of Substitute There is a very limited
substitute for this coconut
beard moisturizer products in
Low

the Indian market.
The threat of New Entrants As the industry is comprised
of a very limited number of
beard moisturizer products,
reflects that there are chances
for new entrants to cover the
space.
High
Rivalry among Existing
Players
The cosmetics industry is
intensively competitive, but
some of the beard
moisturizer brands that
compete with each other in
the market.
Moderate
Source [(Logic, 2018)]

PEST Analysis
Political Factor
There are some of the political factors that need to be considered are legal issues, regulations,
and rules of the administration and many others formal and informal rules under which a
company needs to operate. Some of the political factors are:
Tax Policy: The business has to deal with the tax rate of around 30%, which is said to be the
highest most rates as the corporate tax rate (Bank Bazaar, 2018). This declines the company’s
profit.
Economic Factor
The prospective customer’s purchasing power and cost of capital of the company is
influenced by different economic factors (Indian Mirror, 2018). Some of the factors include:
The rate of Inflation: The inflationary period is undesirably distressing the firm as the raw
machinery, raw material, etc. needs to be acquired at a higher price.
Social Factor
Cultural and demographic aspects create a share of the social forces. These forces influence
the size of the potential market and the needs of the customers. The forces that are included
are:
Health Consciousness: Considering the end user's safety and social responsibilities, the
coconut beard moisturizer has utilized the chemicals that will not harm the skin of the user
and are a little bit costly as compared to other chemicals.
Technological Factors
The technological factors are comprised of environmental and ecological aspects. The
technological factors are:

Research and Development: The P&G will have to invest a lot of amount in the research,
development of the beard moisturizer in the coming future as the firm has the advantage of
being an innovator in introducing this kind of product in the Indian market, and the
competitors will effortlessly copy the product. Therefore, the firm needs to invest regularly in
the activities of research and development in order to maintain the position in the market.
Source [(Femplate, 2018)]

References
Bank Bazaar (2018) Corporate Tax for Financial Year 2018-19 & Assessment Year 2019-20
[online]. Available from https://www.bankbazaar.com/tax/corporate-tax.html?ck=Y
%2BziX71XnZjIM9ZwEflsyDYlRL7gaN4W0xhuJSr9Iq7aMYwRm2IPACTQB2XBBtGG&
rc=1 [accessed 7 December 2018]
Femplate (2018) Analysis: Template Pestle Analysis Template [online]. Available from
https://www.femplate.com/pestle-analysis-template/template-pestle-analysis-template/
[accessed 7 December 2018]
India Mart (2018) Beard Oil [online]. Available from https://dir.indiamart.com/impcat/beard-
oil.html [accessed 7 December 2018]
Indian Mirror (2018) Indian Cosmetic Industry [online]. Available from
http://www.indianmirror.com/indian-industries/cosmetics.html [accessed 7 December 2018]
Logic (2018) Life Underwriting Training Program [online]. Available from
https://www.logiq3.com/life-underwriting-training [accessed 7 December 2018]