Procter & Gamble Marketing Strategy Report: A Detailed Analysis

This report presents a comprehensive marketing strategy analysis of Procter & Gamble (P&G), focusing on its detergent business in the UK market. The analysis begins with an executive summary, followed by an introduction to P&G's background and a detailed PESTLE and SWOT analysis, evaluating political, economic, social, technological, environmental, and legal factors, along with P&G's strengths, weaknesses, opportunities, and threats. The report then examines P&G's competitive advantage (USP) and current marketing strategies, including profitability and market share. The second part of the report focuses on segmentation, targeting, and positioning (STP), recommending specific goals and objectives. It also proposes marketing strategies based on the marketing mix and provides a Baron Approach of business, concluding with recommendations for P&G to enhance its market position and competitiveness, referencing its main competitor Unilever.

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Marketing Strategy

Executive summary
In the recent time, competition has increased to a great extent that requires the firms to adopt
several innovative measures. Procter and Gamble achieve several positive and negative
aspect in UK. Due to the stable political environment, it do not have to face such serious
issues. In spite of this, the increasing demand of its detergent also offers several positive
aspects to Procter and Gamble. However, it has to face several challenges due to the local
leaders. In order to create the unique position in the market, it ensures communication
through different channels. These are the reasons, it is able to gain huge market share and
growth in UK.

Contents
Introduction................................................................................................................................2
Pestle analysis of Procter and gamble UK.................................................................................2
Swot Analysis.............................................................................................................................3
USP of Procter and gamble or competitive advantage analysis.................................................4
Current marketing strategies of Procter and gamble..................................................................4
Part Two.....................................................................................................................................5
Segmentation, targeting and positioning of Procter and gamble...............................................5
Recommended goals and objectives..........................................................................................6
Marketing strategy.....................................................................................................................6
Marketing mix for Procter and gamble......................................................................................6
Recommended marketing objectives.........................................................................................7
Baron Approach of business......................................................................................................8
Conclusion..................................................................................................................................9
References................................................................................................................................10

Pestle analysis of Procter and gamble UK
Political Factors: In UK, the political environment of the country is usually stable for
conducting any business. However, there are some ambiguity related to the Brexit situation
but it does not affect Procter and Gamble broadly. The policies made by government is also
stable that makes easier for the Procter and Gamble to make its business decisions regarding
their investment because it does not have much changes in taxation, policies, and some of the
political decision.
Economic factors: It is found that the economic growth of UK is not that much extraordinary
but relatively it is stable. Population is also increasing that presents the higher opportunities
for companies to enhance their business. Due to this, companies are also giving emphasis on
the upper as well as middle class people. In this way, it can also give focus on increasing the
stores number in some of the potential areas. It can work according to the economic changes
by bringing several changes using change management approach. The adoption of change
management approach can be brought in the organisation (Stanton, 2018).
Social factors: In UK, most of the people prefer to ensure the purchasing of the products from
supermarket where they find almost all the products under one roof. Due to this reason,
Procter and Gamble detergent comes into the mind of people in big way. They have also
ensured the tie up with almost all the supermarkets such as Tesco, Sainsbury. It also makes
the shopping trip for most of the people once in a week. Therefore, Procter and Gamble
should make its strategy by using the advantage of online channel as well as home delivery.
By considering these attributes, it can easily able to increase the convenience for the
customers.
Technological: countries such as UK have large number of phone users, internet users, as
well as special networking users on Twitter, Facebook as well as on Instagram. Due to such
reason, companies have also adopted several promotion activities. P & G also uses several
technological advance methods in order to enhance its effective as well as operational
efficiency. It is true that the detergents can also consider advance research and development
by using several IT methods and technology. Introduction and new and innovative
technology will help it in staying away from the competition. Several Informational
Technology based operational systems can also help the Procter and gamble in outsourcing

few of the manufacturing and activities. As a result, it will also be able to reduce the cost.
Due to this, it can ensure the various technological advanced in order to stay innovative and
creative (Dodgson, 2018).
Environmental factors: Procter and gamble has developed the good reputation from the last
several years for better serving the detergent market. For example: it has undertaken several
sustainable development plans by making use of the renewable resources. It has also
developed the strong and positive brand image by using the environment friendly product in
the eyes of customers. In the recent time also, it is regularly trying to improve the era of
environmental environment friendly products by considering the health and safety issues. It
has also undertaken the sustainability in mind by keeping its outstanding performance in
packaging too.
Legal factors: Procter and gamble is required to be careful regarding the significant rules and
regulations of several countries where it is currently operating. However, the major fact is
that every country has its own laws. Due to this, Procter and gamble is required to effectively
developing the production and marketing strategy by taken into account the different laws
and rules. However, it is true that P & G has good reputation all over the world.
Swot Analysis
 Strengths: Procter and gamble is well known company as well as it has strong
financial position. This helps the company to easily gain the customers for its brand.
 It has strong presence in almost all the cities of UK. This helps it in increasing its
market share.
 It has strong customer base because customers who have used Procter and gamble
once do not go back to any other detergent. Due to this, it helps it in increasing its brand
equity.
 It also has competitive pricing due to the outsourcing of manufacturing.
 The has also investment huge amount in the research and development that helped it
in gaining the strong brand image. For example- Procter and gamble is the first brand who
has introduced the fragrances in the market.
Weaknesses
 It has to face opposition form the several local traders.

 The major weakness of the Procter and gamble is its dependence on the contract
manufacturing.
 It is also found that shopping experience become quite impersonal. In addition to this,
Procter and gamble also not has any advertisement recall significance.
Opportunities
 Due to its strong brand image, it has the higher potential to grow in the market of
Europe and UK.
 Several technological advancements as well as HR training can be done in order to
boost the effectiveness and efficiency of team (Schlegelmilch, 2016).
 Some of the rural market can also prove to be the significant opportunity for Procter
and gamble. From this market, it can gain the huge profit. It can also think of capturing the
entire emerging market due to its strong brand image.
Threats
 Due to the increasing competition, it can face the challenges or threat from the retail
industries.
 In recent time, some of the profit is not able to achieve due to the higher rate of
competition (Hänninen and Karjaluoto, 2017).
 Due to the lower rate of growth in economy, it is not able to gain the higher growth
than the average rate of growth.
USP of Procter and gamble or competitive advantage analysis
Procter and gamble is seen as the most expensive product in comparison to its similar
products across the world. Besides this, it also less presence in several emerging economies.
In several countries, it has less recognition such as Mexico, India, and Europe. In these
countries, it has to put higher efforts in order to attract the customers (MacKenzie and
Martinez Lucio, 2016). Its capability to execute the innovative marketing strategy can
proved to be helpful for the Procter and gamble in India and Europe because the experience
can be used by Procter and gamble to increase its market share in UK as well as some of the
developing economies.

It is true that Procter and gamble is owned by the biggest FMCG company P & G. due to this,
it has several opportunities for taking the benefits of research and development by
introducing the new products such as professional cleaning materials, industrial cleaning,
Phenyl based products as well as disinfectants (Winter, McDonagh, Lappig and Smith, 2018).
It is found that the detergent industry is however proved to be highly competitive by
including the higher barriers on entry. Whenever any company make unique product, other
companies also copy that product. Due to this, competition is increasing to a higher rate. New
legislation and regulations can increase the product cost but it proved to be the primary USP
of the Procter and gamble as the brand name (Bougherara, Lecheb and Belkhir, 2018). in
addition to this, financial muscle, brand value and ,marketing activities are some of the
elements included in the USP of Procter and gamble. In this way, Procter and gamble is
maintaining its unique position in the market due to innovative capabilities and brand image.
From the past many years, it is able to maintain its position in the market.
The major competitor of Procter and Gamble is Unilever that also has strong cash flow. In a
report, it is found that the P & G was having around $10 billion free cash. As compare to this,
Unilever has $7 billion free cash flow (Stoffel, 2018). For example- P & G has several strong
players in the detergent industry such as Procter and gamble, Fairy and Dreft. Similarly,
Unilever also has leading detergent named Persil.
Current marketing strategies of Procter and gamble
The current marketing strategy is the different strategy that keeps its product aside from other
competitors. At the time of bringing any new product, Procter and gamble always makes sure
that it creates the unique selling proposition. The use of differentiation strategy provides
several opportunities to Procter and gamble in terms of its brand value as well as premium
pricing. It is also found that around 200 ingredients are used and then tested at Procter and
gamble before making any final products. It clearly indicates that it put so many efforts to
ensure the differentiation in its product. It proved to be quite significant especially at the
global level. In UK and Europe also, it has launched the wide number of detergent for the top
leading and front leading fully automated washing machines (Ducange, Pecori and Mezzina,
2018). It has also launched some of the special detergent that is used for the specific washing
machines. Due to such strategies, customer feels its brand unique in comparison to the other
competitors. Its marketing strategy also includes different approaches such as television,

brand ad by celebrities, radio marketing, print media. promotion, health and safety programs,
as well as online promotion. All these marketing promotional activities makes the entire
marketing plan highly effective.
Profitability: In UK, Procter and gamble has huge number of competitors. Due to this,
Procter and gamble detergent has done well when it comes to its profitability. Procter and
gamble being the best quality product brand, high price and yield the higher revenue. It UK,
it is able to generate the high profit as compare its competitors.
Part Two
In the recent marketing strategy, Procter and gamble used to target the upper to middle class
people due to its differentiation strategy and brand value. However, for further expansion, it
is recommended to Procter and gamble for entering into several emerging economies such as
Russia, China and Brazil. For this, Procter and gamble will definitely require some other
marketing objectives.
Segmentation, targeting and positioning of Procter and gamble
Segmentation: In these countries, the population for target will be the upper to middle class
people because these countries have huge number of buyers or customers in this range. Any
family with the annual income of at least 15000 USD will be the part of its target market that
will include the large families, small families, and single as well as couple working class
people. For meeting the entire market segment needed, product can be marketed in the wide
variety of package size. Procter and gamble can also use the product packaging of the new
product as its routine purpose and can also be refill on the regular basis. Due to this, users
will prefer to use such products that can be reused (French, 2017). Besides this, it is also
essential to know the market segmentation based on income. In this category, product can be
launched for the people belong to middle class. One of the segmentation can be done on the
basis of environmental concerns and intellectual property rights of the person. This market
segment will not be concerned if the product has premium price. The major concern of such
kind of people is environmental friendly material or not (Ryan, 2016) does the packaging.

Targeting: targeting of such market segment requires the multi pronged approach by putting
the high impact on the every market segment. The first market segment therefore is working
executives and families. It is because they are more technologically advanced. These people
can be targeted by ensuring several promotional messages on the media channels such as
television, internet and print media (Davies, 2018). The next target market can be the
environmental concerned people. these people can be targeted by using several
communication channels such as health talks, talk shows, environmental articles as well as
documentaries.
Positioning: positioning of its products can be done as the environmental conscious detergent
or cost friendly that can be develop by keeping in mind the changing trends of the customers.
The positioning of product can also be done as the high value product because it does not
include the harmful chemicals. The positioning can be done in such a manner because it
addresses many issues such as durability, health, refilling in the boxes, as well as reusable
(Hsu, Lien and Chen, 2015).
Performance analysis of P & G UK (Procter and gamble)
2019 $67,684
2018 $66,832
2017 $65,058
2016 $65,299
2015 $70,749

2014 $74,401
2013 $80,116
Recommended goals and objectives
The marketing aim for the new market will be as follows:
 To develop the distribution and marketing channel that will help in achieving the growth of
around 15 per cent in the sales on quarterly basis.
 To establish the strong brand name in the mind of detergent decision makers.
 To gain the market share of at least 15 per cent in the period of 12 months.
 To develop such marketing strategy that will help in enabling the Procter and gamble to
develop ist entry in the new countries as profitable and growth business.
Marketing strategy
It is already analysed that the market scenario in respect to the economic, political as well as
demographic scenario. The subsequent step is to effectively develop the marketing mix that
will be based on the analysis. It will help in keeping the product price, promotion in the right
way. It can also make use the different model that suit to the company in best possible way.
Marketing of the new product can be done in the proper and integrated manner so that various
marketing channels will communicate the same message in several forms. Integrated
marketing communication will also be prepared for the product including multiple channels
of media like print media, television, internet, radio as well as internet (Ali Nasir, Wu, Yago
and Soliman, 2016). The attractive line for such product can be the “sensible detergent” that
tends to cover the major theme of the product in short and effective manner. The further
marketing mix for the product will include the premium approach of pricing as well as value
of money for taking entry into market. the product will also be designed to sue the skimming
strategy in order to gain more market share. Differentiation product strategy will be the major
theme that will be used here. Promotion of its entire product will be done through the

environmental clubs and conventional channels because it is taken as the credible and
effective source of information. In the recent time, organisations are also required to ensure
the proper adoption of the marketing strategies so that customers also get aware about the
product. the influence of social media on the lives of people has also increased to a larger
extent that will prove to be beneficial for the company.
Marketing mix for Procter and gamble
Product: in this, high value detergents will be used by using the packaging based on
environmental friendly material. Besides this, value of brand will be high by keeping the
prices as value of money. It will also move to the other similar market segment due to its
higher strong presence in several countries.
Price: Price is such value that a person exchange by getting any of the product or service. Due
to this, it proves to be the most challenging element besides all the part of marketing mix. It
will keep the value of money by ensuring high quality product for upper to middle class
segment (Išoraitė, 2016). It will keep the prices somehow high and people will purchase who
are majorly concerned about the environment friendly products. It will also ensure the cost
effective detergent powder so that customer also prefer to sue this.
Place: Place is one such element of the marketing mix that helps the organisation in
determining where the product will be sold in the market (Kannan, 2017). It also includes the
packaging as well as delivery of the product. It will include the several places such as
supermarkets, colleges, offices, malls, community centres, as well as factories.
Promotion: by using different IMC techniques with the multiple approach to ensure the
several market segments, various channels will be used such as radio, television, social
media, internet, talk shows, print media, direct marketing as well as blogs (Zhang, Zhang,
Fung, Rangaiah and Ng, 2018). These promotional tools will prove to be highly effective for
the Procter and gamble that in turn helps in increase its market share.
Recommended marketing objectives
It is true that different policies have different impact on the organisation. They affect the
organisation in several aspects in terms of financial condition, economy, marketing, new
projects, new technologies, as well as business strategies. These policies also bring several
changes in the strategies. However, these changes might include the current services that are

provided by the organisation. In UK, international trade proved to be the major factor in
strengthening the economic growth. Almost part of the population in the recent time is
involved in the international trade for earning good amount of money. International trade is
said to be the process of exchanging of services, goods as well as capital across the
international borders between two or more countries. Almost in every country, international
trade is seen as the major contributor of gross domestic product. In the recent time also,
international trade has been prove as the biggest factor in the development of economy. It is
because it helps in developing the opportunities for producers, consumers, as well as
countries for getting more exposure related to the new market.
The major decisions as well as functionality in every organisation are seen as the major
market force. These essential economic factors put impact on the demand, price, as well as
availability of the product. In this, demand and supply are most important factor that tends to
affect the quality as well as price of the product and services. These forces keep on changing
with the passage of time. Those organisations who fail to properly respond to the significant
market forces tend to loss the race to acquire the higher position as compare to its
competitors. The effect of these factors are the excess demand that further leads to the
increase in production and price while excess supply in order to ensure the reduction in
output and price (Mulhern, 2009).
It is true that every company want to grow gradually by growing its customer base. It also
enters into the new market. Due to this, Procter and gamble is also required to taken into
account the globalization. With the geographic, economic and infrastructure comparison of
the emerging or developing economies such as Brazil, one fact is highlighted by stating that
Brazil has the affluent market that is the part of various international organisation such as
World Trade organisation and United Nation. The effective working in the emerging
economies will help it in gaining the huge market share.
Baron Approach of business
The chosen company P & G (Procter and gamble) is acting as the Baron. It means that the
company do have much of the geographic coverage but the strength of its product is strong.
The major characteristic of the company is the adoption of baron strategy and approach to
marketing. The company is however doing very well in the UK as well as in Europe. Even
for the Brazil market, it has the ability to provide differentiated and quality products. the most