Marketing Strategy Assessment: P&G Detergent Brand Analysis

This project report provides a comprehensive analysis of the marketing strategy employed by Procter & Gamble (P&G), focusing on one of its prominent detergent brands. It begins with an executive summary and an introduction to marketing strategy, highlighting its role in guiding business objectives and achieving sustainability. The report then delves into a situational analysis, utilizing SWOT and PESTEL frameworks to assess the internal and external business environments, respectively. It identifies P&G's strengths, weaknesses, opportunities, and threats, as well as the political, economic, social, technological, environmental, and legal factors influencing its operations. The report further examines P&G's competitive advantages, particularly its unique selling proposition (USP) and strategic decisions to streamline its product portfolio. An evaluation of P&G's current marketing strategy, including its emphasis on higher-end brands and digital marketing, is also presented. Finally, the report recommends future goals and marketing strategies based on the marketing mix, segmentation, targeting, and positioning (STP) analysis, aiming to sustain P&G's competitive advantages in the long run.

Marketing Strategy
Assessment Question

EXECUTIVE SUMMARY
This project report is based on marketing strategy used in P&G organisation in relation to
one of its most prominent detergent brand. For developing effective marketing strategies for the
organisation analysis of micro and macro business environment is performed with assessment of
competitive advantage. Current marketing strategy and future goals and objectives of the
organisation is established by recommending some of the future goals and marketing strategy.
This process will help P&G organisation to sustain in long run and enjoy competitive advantages
in different markets.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Situational analysis......................................................................................................................1
Competitive advantage................................................................................................................4
Evaluation of current market strategy.........................................................................................5
PART 2............................................................................................................................................6
Segmentation Targeting And Positioning...................................................................................6
Recommended objectives and goals...........................................................................................7
Recommended marketing strategies based on marketing mix....................................................8
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................11

INTRODUCTION
Marketing strategy is defined as a tool which leads each business organisation to develop
or design goals and objectives of marketing. A marketing strategy helps in presenting goods and
services offered by business organisation in promotional manner to maximise profits. Through
this each business organisation can implement its long-term forward looking approaches so that
all the goals and objective in relation to marketing can be achieved and sustainability is
introduced in the operations (Akdoğan and Altuntaş, 2015). Through effective marketing
strategy each business organisation can assess components of growth and implement these
components in relation to growth and success of market strategy. In this project report The
Procter and Gamble Company (P&G) is selected to elaborate the concept of marketing strategy.
It is a consumer good organisation which was founded in the year 1837 by William Procter and
James Gamble. It's headquarters are situated in United States and earning a net income of approx
$3.897 billion while employing 97000 employees. Project report consist of situational analysis,
competitive advantage and evaluation of marketing strategies. Together with this STP and
SMART plan analysis is elaborated to reflect marketing strategy.
PART 1
Situational analysis
Situational analysis is a method through which managers of business organisation access
internal and external environment conditions where business operates. Through this process
operator of business understand the capabilities, consumers and various situations that are related
to business organisations. It defined potential consumers, expected growth and competitors that
are available while operating business activities (Baumgartner, 2014). In situational analysis for
assessing internal business environment SWOT analysis tool is used. This is a method through
which strength, weakness, opportunities and threats that are available with internal business
environment is recorded. SWOT analysis of The Procter and Gamble Company is described as
Procter and Gamble Company follows-
Strength: P&G organisation while operating in the UK market enjoys number of
strengths which make this organisation highly competitive with others. Serving quality products
is one of its strengths that leads to economics of scale as more and more consumers are attracted
for quality products. P&G serves with number of products that leads to wide range of choice for
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its consumers and excellent R&D helps in introducing innovative products to targeted consumer
group.
Weakness: As this is one of the old organisation in which organisational structure is
designed on old methods which delays in decision making process. P&G organisation is at its
saturation point and this leads to slow growth rate of business (Brennan and Croft, 2012). While
dealing with consumer goods change in the taste and preference of consumers are very high and
this leads to change in the market demand for multi-pal products offered by P&G organisation.
Opportunities: For P&G organisation making availability of products in the rural
markets is an opportunity to extend larger market share. Providing products that are more of
organic provides growth to business in comparison to its competitors. When expansion of
business will be made in the existing market or in new markets then it will leads to booming and
purchasing power of P&G organisation will increase. Goal of serving quality products and
affordable pricing will be achieved.
Threat: P&G is serving in consumer products and intense competition is faced while
operating at multi-pal locations. Generation of national and international brands through
globalization is serving as a threat to business activities. In UK there are number of branded
glossary stores and they are serving products on their own name and this is a threat for P&G
company in long run.
In the process of situational analysis to access external business environment PESTEL
analysis will be performed by P&G organisation. Elements of analysis are elaborated are as
follows-
Political: Government and political strategies in relation to business enterprises affects
operations of P&G organisation while operating in different countries. Macro business
environment is controlled and governed through government regulations and rise in government
support to businesses can become an opportunity and threat to P&G company. Stability in
political condition and effect of recent reforms through announcement of BREXIT must be
considered to analysis external business environment (PESTLE Analysis, 2019).
Economic: As P&G organisation deals in consumer goods and it becomes important to
consider economic factors while performing various operations. Economic factors like growth
rate, disposable income and economic stability plays important role for success of business
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operations. Higher disposable income with consumers will maximise profits of P&G
organisation as more and more products will be sold.
Source: PESTLE Analysis, 2019
Social: Consumers experience while interacting with organisation plays important role
towards success of business organisation. In order to get competitive advantage better quality at
affordable rates must be provided to consumers of P&G organisation. This organisation is
considered influencing through its social inclusion and gender inclusion. Quality products served
at larger scale will provide an opportunity to grow at higher rate (Eshuis, Braun and Klijn,
2013).
Technological: Operations and marketing of P&G organisation is influenced through
technological innovation. Technological changes in business operations helps in adopting
effective marketing strategies. Adopting changes in the technological requirements will help in
generating more and more revenue by satisfying large consumer base. This will also reduce
complexity in business operations and introduce effective method of operations through
innovation.
Environmental: P&G organisation while operating in number of countries has accessed
the need for adopting sustainable development concept. To accomplish sustainability certain
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Illustration 1: PESTLE Analysis, 2019

goals are established to be meet with set deadlines. Renewable energy, water efficiency and
minimal wastage are some of the major goals that helps in achieving environmental success.
Legal: While operating at international level various regulations related to heath and
hygiene of consumer based products must be taken into prime consideration (Furnham and
Gunter, 2015). As P&G organisation is servings its goods with higher quality that matches with
requirements at national and international level legal system and termed as an opportunity to gain
competitive advantage.
Competitive advantage
Unique selling proposition is one of the competitive advantage factor which leads to
differentiate a product form its competitors. USP of a product may includes lowest cost, highest
quality or it can be a first ever product of its kind. This theory was introduced to reflect a pattern
in successful advertising campaigns. It is an idea that sets a business organisation apart from its
competitors. Through USP a business organisation is able to capture a large market share, to
become viable, sustainable and profitable. Consumers will be attracted towards business
organisations which are serving goods and services that possess USP in their products. As
consumers will be able to receive goods that possess more value for money towards opting for
better goods and services (Gautier and Pache, 2015). A satisfied consumers will become
attracted towards organisation and also influence others to consume these products and services
offered. Introducing competitive advantage policies in the P&G organisation brings three
different types of advantages that are cost, product and service differentiation and niche
strategies.
In 2014 Procter and Gamble Company announces to adopt a competitive strategy to
become a more nimble company. To complete this goal the organisation drop half of their
brands. For this goods that satisfies large number of consumer base was selected so that other
products can be removed. This organisation becomes first to discover the consumer could be
targeted based on brand values. When Procter and Gamble Company follows the concept of USP
and minimises its number of products the also with reduced number of products 95% of profits
was generated through its operations. Establishing as a nimble organisation has reduced
operations of P&G bloated by excess inventory, equipment and employees and unnecessary
work space that leads to unprofitable consumers.
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The strategy for perform in limited area helps P&G organisation to minimise their funds
in non productive resources. As while making strategy for competitive advantage it was seen that
serving with number of products do not provide any benefit to organisation. As most of the
revenue is earned through a specific range of products (Goodman and Watts, 2013). Minimising
in the size of operations reduces undue employment of finances in resources to operate non
productive operations. Adaptation of this competitive strategy has become one of the most
important tool that leads P&G organisation towards success by enjoying more and more success.
Evaluation of current market strategy
Procter and Gamble Company is one of the leading organisation serving in consumable
goods and operating at international level. The organisation possess one of the best marketing
strategy and spends highest amount on advertisement in the world to enhance marketing. P&G
adopts its marketing strategy in such manner that it leads towards success. In present time,
having an effective marketing strategy has become a vital element for every single business
organisation. This helps a company in sustaining within the market for a longer period of time
and it also aid firm in promoting both the brand name along with the products and services
offered by them. If it is talked about Procter and Gamble Company, then currently this
organisation is also having an effective marketing strategy, which is offering them number of
benefits like high customer engagement, increase in sales of products and services offered by
them, enhancement among productivity and profitability and so on. Current marketing strategy,
which has been followed by Procter and Gamble is presented underneath:
Marketing strategy of Procter and Gamble:
Over the years, Procter and Gamble has managed to develop number of marketing
strategies, which has helped this business company in sustaining within the market and gaining
number of competitive advantages (Malhotra and Malhotra, 2012). But, it has been analysed that
the P&G's marketing budget, mainly focuses much more on traditional advertising measures
such as print and TV advertising. Along with this, at present there are two major strategies that
has been taken into consideration and these are :
Higher-End Brands: P&G's marketing strategy has specifically been deployed for year
to year. The reason that came in front i.e. company has kept it's focus on of the more interesting
is an emphasis over higher-end products and services so that, standardisation of both the
products and services could effectively be raised. In the year of 2013, Procter and Gamble has
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developed an effective approach, which is to develop higher prices for some of their consumer
brands, introduced new range of products, and the paper towels that have met with mixed results.
Including this, Procter and Gamble is now offering lower prices on many of their consumer
products, which may be an indication that this particular marketing strategy is being altered.
Therefore, it can easily be said that Procter and Gamble was specifically willing to try out new
ideas, which aid in separating different range of companies competition (Massa, Tucci and
Afuah, 2017).
Emphasis on Digital Marketing: In present time, it is said that company is dealing with
number of issues in regards to the internet. Here, manager and leaders of Procter and Gamble in
August, 2013, the level of their showcasing the budget plan devoted to digitalisation which was
considered to be astonishing 35%. In present time, P&G has specifically managed to spend
around $3 billion for promoting number of products and services for every single year. Including
this, it is also said that P&G has also considered advanced advertising because it is less cost
consuming and reduce the time taking process as well of all the procedures and more. Here, the
digital marketing that P&G has mainly incorporated mobile and search oriented marketing,
online video, social media and so on.
Therefore, in order to promote Ariel detergent, company i.e. Procter and Gamble has
considered digital marketing strategy, where marketing department has become able to enhance
sales of Ariel in all over the world and with the help of this firm will effectively attain number of
objectives in regards to sales, customer engagement and so on within the market for a longer
period of time.
PART 2
Segmentation Targeting And Positioning
In present time, Segmentation, Targeting and Positioning (STP) can be considered as an effective
and appropriate approach, which helps number of business organisations in performing the
modern marketing in specified time frame. Including this, it is said that STP model has been
utilised for creating marketing communications plans as it aid firm in marketing the number of
prioritised related propositions. Through this, a company like Procter and Gamble become able
to deliver personalised and relevant messages to engage within the different audiences.
Segmentation:
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 Demographics: This type of segmentation basically consists of different elements and
these are : income, age, gender, marital status, education, ethnicity, household, education,
length of residence, size and so on. In present context, a company like Procter and
Gamble majorly can rely on this segment, as of targeting the customers (Morgan,
Katsikeas and Vorhies, 2012).
 Psycho-graphics: Emotions and Personality are the two basic term, that stays linked with
this type of segmentation. Considering, number of things like purchase choices, including
attitudes would directly aid Procter and Gamble in gaining high range of benefits in
specified time frame.
 Geographic: Region, Country, metropolitan, area, population density, rural location, even
climate and more are said to be considered as the within the type of segment, which can
be utilised by Procter and Gamble.
 Behaviours: Brand loyalty, nature of the purchase, benefits sought, usage level, reaction
to marketing factors and distribution channels can be used by Procter and Gamble in
order to promote Ariel Surf within the market.
In present context, P&G has taken into consideration of Demographic Segmentation,
where company has decided to focus on two factors of it like income level and the age (20 to 50,
both male and female), while planning to market Ariel Detergent within the targeted market.
Targeting :
Targeting is particularly be done to evaluate whether the potential along with the
commercial attractiveness takes place in regards to a particular product, Here, if it is talked about
Procter and Gamble then the company will target customers with the age group of 20 to 50 and
who has a good income level, in order to gain anticipated profits.
Positioning :
In present context, P&G is developing a unique position within the sector, as compared to
it's competitors and this is specifically be done considering the marketing strategy, which has
been developed by the business organisation and through offering customers with Ariel
Detergent with low prices but with high quality.
Recommended objectives and goals
The recommended goals and objective that will be implemented in p&g organisation is
“Organisation is willing to attain growth in up coming 2 years by making modifications in its
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marketing activities so that profits could be maximised by 5% ”. This is one of the goal for P&G
organisation and other goal or objective can be “Expanding its brands in other segments so that
large consumer base can be created in next 3 years and overall profits of the organisation can be
improved up to 2.5% ”.
Both the goals and objectives that P&G organisation is planning to achieve in long run is
SMART as they are specific about what needs to be achieved. Measurable as specific targets are
provided. Both the goals are achievable as no fictional figure is involved. Targets are real and
provided with specific time to achieve.
Recommended marketing strategies based on marketing mix
Marketing mix is a combination of various factors that are controlled by business
organisation to influence consumers to purchase goods and services offered to them. Marketing
mix acts as a tool through which marketing strategy is created and implemented in the
organisation through adopting effective tactics (Scharff and Amelin, 2016). A effective
marketing strategy plays important role towards success of any business organisation. The 4 P's
of marketing mix of P&G is used to achieve goals in the marketing plan related to one of its
detergent brand.
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Source: Marketing Mix, 2019
Product: P&G organisation is one of the leading organisation for serving in consumer
goods. As a global leader the organisation is offering with number of products that relates to
different categories such as beauty, grooming, personal care and home care. This organisation
while serving with number of products leads to attract more and more consumers. A quality of
the products is maintained so that prices can be held reasonable and large target market can be
selected. In cosmetics max factors and Wella are some of the famous products. In dishwashing
joy and dawn dishwashing is one of the most famous products served by P&G organisation.
Olay, Old Spice and safeguard products are some of the famous skin care products served by the
organisation. As Ariel is one of the famous detergent brand which is available at international
level (Marketing Mix, 2019).
Price: In P&G organisation pricing strategy that is used for various products depends on
the quality for the product served. Their are number of brands available with the organisation and
different pricing strategy is used to decide pricing. Adjustable pricing strategy is used in the
organisation. Products that faces high amount of competition are charged with moderate pricing
so that competition can be made effectively. Ariel is one of the famous detergent brand and and
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Illustration 2: Marketing Mix, 2019

leads to increase detergent market in UK through its effective promotional techniques. As 30%
of the detergent market share is grabbed by the organisation and its education message through
marketing strategies helps in attracting more and more consumers. Competitors are the
influencer of the pricing for any product in relation to consumer goods. While determining
pricing strategy for detergents in P&G organisation a scope for changes in the pricing is
maintained.
Promotions: P&G organisation is spending highest amount on marketing for its product
and in the recent times it has adopted online media facility for promotions as an attraction
strategy. Creative ads and heavy advertising with celebrities for advertisement attracts large and
large number of targeted consumers (Shih, Chen and Chen, 2013). For promotions sponsorship is
made to various events and shows and online marketing strategy leads to high amount of
promotions. Together with this a official website is provided to consumers through which
detailed information regarding products can be done and purchases can be made. P&G
organisation has made various tie ups with shopping sites which leads to enhance its online
presence and provides more amount of consumer visibility. For promoting Ariel brand famous
celebrities are considered and connecting this with educational contribution made it a effective
promotional tool used for promotions.
Place: The Procter and Gamble Company has its worldwide network through which it
operates at international level for distributing its products to different places. This organisation is
established in one hundred and forty countries like UK, USA, China and India. Its strong
network of distribution make this organisation as one of the competitive in consumer goods.
Distribution process which is followed by business organisation possess three major ways such
as intensive distribution, speciality distribution and extensive distribution. For detergent brands
like Ariel intensive distribution strategy is used so that each product can be made available in
the4 target market at right place in right time (Varadarajan, 2015). A channel of distribution is
created so that a place can be established for target consumer group so that each targeted
consumer reach to required products.
The recommended marketing strategy is to serve large number of consumers with
required products at reasonable price. Establishment are made which are reachable to consumers
and promotions using online media needs to be focused for long term success of organisation.
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CONCLUSION
From the above project report it has been concluded that marketing strategy plays
important role in providing competitive advantages to business organisation over its competitors.
Through adopting effective marketing strategy a product and service is designed in such manner
so that needs and wants of consumers can be satisfied in the best profitable manner. Resources
that are used for marketing are used in potential manner and so that all the target consumer attain
their value for good. The marketing functions that is used by organisation helps in providing
business information that is used to implementing marketing strategy in the most profitable
manner. Analysing internal and external business environmental factors helps in taking all the
required steps on time so that negative influence can be minimised. Early identification of
competition helps in taking all the required measures so that P&G organisation can compete
profitably. Goals and objectives in relation to marketing must be SMART and assessment of STP
is done so that productive marketing mix for detergent brand can be introduced for the
organisation for attain long term objectives.
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Marketing Mix. 2019. [Online]. Available through:
<http://panmore.com/procter-gamble-marketing-mix-4ps-analysis>
PESTLE Analysis. 2019. [Online]. Available through:
<http://panmore.com/procter-gamble-pestel-pestle-analysis-recommendations>
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