1、P&Gs Marketing P&Gs Marketing StrategiesStrategiesIntroduction The Procter & Gamble Company (P&G) is an American multinationall consumer goods The Procter & Gamble Company (P&G) is an American multinationall consumer goods company headquartered in downtown Cincinnati, Ohio, USA. Its products include
2、 foods, company headquartered in downtown Cincinnati, Ohio, USA. Its products include foods, beverages, cleaning agents and personal care products.Products mix, diverse brandsbeverages, cleaning agents and personal care products.Products mix, diverse brandsdifferent brands aim at different target co
3、stomers.different brands aim at different target costomers. Some brands: Olay, Joyce, Safeguard, Pantene Some brands: Olay, Joyce, Safeguard, Pantene Most of these brandsincluding Bounty, Crest and Tideare global products available Most of these brandsincluding Bounty, Crest and Tideare global produ
4、cts available on several continents. Procter & Gamble products are available in North America, Latin on several continents. Procter & Gamble products are available in North America, Latin America, Europe, the Middle East, Africa, Asia, Australia and New ZealandAmerica, Europe, the Middle East, Afric
5、a, Asia, Australia and New ZealandPurposePurpose We will provide branded products and services of superior quality We will provide branded products and services of superior quality and value that improve the lives of the worldand value that improve the lives of the worlds consumers, now and s consum
6、ers, now and for generations to come. As a result, consumers will reward us with for generations to come. As a result, consumers will reward us with leadership sales, profit and value creation, allowing our people, our leadership sales, profit and value creation, allowing our people, our shareholder
7、s and the communities in which we live and work to shareholders and the communities in which we live and work to prosper.As P&Gprosper.As P&Gs Purpose Statement, it articulates a common s Purpose Statement, it articulates a common goal that inspires their employees every day.goal that inspires their
8、 employees every day.Core Strengths In order to win in the consumer products industry, P&G focuses on five core strengths，including：consumer understanding, innovation, brand-building, go-to-market capabilities and scale. In order to understand the consumers, P&G do not cover the unarticulated needs
9、of consumers, and translates consumer desires into new products, which is the so-called innovation. At the same time, P&G shapes purpose-inspired and benefit-driven brand, which can meet their customers needs. With the famous brands, it reaches retailers and consumers at the right place and the righ
10、t time and gets the scale which drives efficiency and consumer valueGlobal Structure & OperationsGlobal Structure & Operations In order to offer the global scale which can benefits the international company, P&G builds up a unique organizational structure and focuses on the relevant consumers in rou
11、ghly 180 countries where their brands are sold. With the framework which P&Gs corporate structure provides, P&G gets the benefits of a global organization with speed as well as efficiency. The global operations keep it in touch with the local communities. At the same time, the companys strong govern
12、ance practices make sure that they can conduct their operations with consistently high standards and integrity.Target market With so many cleaning products, feminine hygiene, personal and beauty care, baby and family, and pet nutrition and care products, the target markets seem to point to stay-at-h
13、ome parents, more specifically mothers with children. As for the products sold at Proctor and Gamble, Proctor and Gamble naturally targets those who own homes. These individuals are the ones that are most likely to use and need the P&G.Social Responsibility For more than 172 years, P&G brands and pe
14、ople have touched and improved consumers lives as best as they can. This commitment extends to their social investments. P&G brands and people are P&G greatest assets, and together, they are a tremendous and indispensable force that can make an impact that matters. Through P&Gs Live, Learn and Thriv
15、e cause, they are helping children in need around the world get healthy bodies and suitable environment, receive high quality education and build skills for their future life. Now, “Learn more about Live, Learn and Thrive” is P&Gs maxim of social responsibility.Marketing StrategiesProducts: For past
16、 172 years, with so many cleaning products, For past 172 years, with so many cleaning products, feminine hygiene, personal and beauty care, baby and family feminine hygiene, personal and beauty care, baby and family and pet nutrition and care products, P&G has been providing and pet nutrition and ca
17、re products, P&G has been providing their reliable brands in order to prove every day a little their reliable brands in order to prove every day a little better for the consumers all over the world. With 23 famous better for the consumers all over the world. With 23 famous brands which have more tha
18、n $1 billion in annual sales, and brands which have more than $1 billion in annual sales, and another 20 brands generating about $500 million or more another 20 brands generating about $500 million or more every year, P&G has the largest lineup of leading brands in every year, P&G has the largest li
19、neup of leading brands in its industry, “These 43 brands have delivered a 9-year its industry, “These 43 brands have delivered a 9-year compound average sales growth rate of about 10% double compound average sales growth rate of about 10% double the growth rate of the balance of P&Gs brand portfolio
20、”. the growth rate of the balance of P&Gs brand portfolio”. 2009 annual report of P&G2009 annual report of P&GPricePriceThe objective which P&G wants to meet is getting more The objective which P&G wants to meet is getting more market share by its many sub-brands. In 2007, Unilever market share by i
21、ts many sub-brands. In 2007, Unilever promotes new product -Clear shampoo, which has promotes new product -Clear shampoo, which has the same function and target customers with P&Gs star the same function and target customers with P&Gs star product- Head & Shoulders. Thus, P&G declined its product- H
22、ead & Shoulders. Thus, P&G declined its price of Head & Shoulders in order to cope with above-price of Head & Shoulders in order to cope with above-mentioned challenge. After Unilever promoted new mentioned challenge. After Unilever promoted new products, P&G gave 200ml package shampoo when products
23、, P&G gave 200ml package shampoo when customers buy 400ml shampoos. In addition, P&G customers buy 400ml shampoos. In addition, P&G increases the publicity scale. Four months later, the new increases the publicity scale. Four months later, the new product of Head & Shoulders gains a lot of praise pr
24、oduct of Head & Shoulders gains a lot of praise because of its low price and package. P&G win more because of its low price and package. P&G win more market share by its pricing strategy. In this case, P&Gs market share by its pricing strategy. In this case, P&Gs goal is taking more market share. Wh
25、en they succeed, goal is taking more market share. When they succeed, P&G raised their products price back to their level P&G raised their products price back to their level before step by step.before step by step.Before 1990 -the golden time of P&G, there is no competitor in the Chinese market, the
26、 needs of customers are huge. So it was a perfect time for P&G to apply price skimming, which means setting an initial high price to cover new product costs and generate a profit. P&G had high profits at that time and used its high prices to set up an impression of high-end brands.However, after the
27、 mid 1990s, P&G encountered more competitors，due to several local brands set up in china, its strong competitor- Unilever also came to china by lower prices. In order to deal with those conditions, P&G decreased its products prices,because Chinese consumers were very sensitive to prices. During this
28、 period of time, the company used Competitor based pricing method to gain its market sharePricePriceP&Gs significant Pricing tactics are defining different prices for different brands to satisfy different customers. P&Gs sub-brand includes Rejoice, which is sold 9.9 Yuan, aiming to meet the customer
29、s who dont want to spend too much money on shampoo. Pantene, a sub-brand emphasizes the protection of hair, its price is 16.9 Yuan in average. So, the brand target customers are the person who wants to spend a little more money to take good care of their hair. With the developing of customers need,
30、Pantene segment its products again these years. Including Sassoon and Clairol, P&Gs product prices ranged from 9.9 Yuan to more than 60 Yuan. No matter how much money the customers want to spend on hair care shampoos, P&Gs products can always satisfy customers needs. It is the P&Gs core price tactic
31、 which is better than other competitors. Also, there is an odd-even price theory, because customers regard prices of 10 Yuan as significantly higher than 9.9 Yuan. In addition， P&G always has great discounts such as buying a large one get a small one for free at holidays. Those methods are always wo
32、rking. Business, Ricky W, GRIFFIN & Ronald J. EBERTPricePrice PlaceDistribution problemsDistribution problemsDuring these years, P&G has some distribution problems due to the changes in retail During these years, P&G has some distribution problems due to the changes in retail chains. After a series
33、of marketing research, P&G found that their retailers lose 11% chains. After a series of marketing research, P&G found that their retailers lose 11% of sales because of out-of-stocks, and that substitutions won back less than 25% of a of sales because of out-of-stocks, and that substitutions won bac
34、k less than 25% of a manufacturermanufacturers lost sales. Maria Jimenez, Derek Prior, 2002. This would absolutely s lost sales. Maria Jimenez, Derek Prior, 2002. This would absolutely be baneful for both P&G and its distributors.be baneful for both P&G and its distributors.The mentioned retail chan
35、ges, which intrigued by the increasing demands, definitely The mentioned retail changes, which intrigued by the increasing demands, definitely put some pressure on P&Gput some pressure on P&Gs supply chains. The origin distribution channels could s supply chains. The origin distribution channels cou
36、ld not satisfy its stakeholdersnot satisfy its stakeholders needs and specific wants. The following two important needs and specific wants. The following two important reasons directly lead to the pressures on retail chains. reasons directly lead to the pressures on retail chains. Currently, consume
37、rs have high expectation to a greater assortment of product Currently, consumers have high expectation to a greater assortment of product options, say, different brands, functions, shapes and smells of hair care products. Thus, options, say, different brands, functions, shapes and smells of hair car
38、e products. Thus, the retailers of P&G need to drive up their service level expectations and diversity of the retailers of P&G need to drive up their service level expectations and diversity of consumer products, which becoming the first reason. Also, cash requirements, from consumer products, which
39、 becoming the first reason. Also, cash requirements, from retailers, creates huge pressure on shorter order-to-delivery cycles and the new flow-retailers, creates huge pressure on shorter order-to-delivery cycles and the new flow-through distribution networks recently raised quickly.through distribu
40、tion networks recently raised quickly.New distribution New distribution strategiesstrategiesAs a major consumer packaged goods manufacturers, P&Gs most competitive retail chain in the world seems not so effective any more. “From Chicago to Caracas, Brussels to Beijing, P&Gs product developers and ma
41、rketers must understand consumer needs better than its competitors. ”Cisco success story stories customer profile- P&GAn innovative engine should be quickly used to connect consumers demands with P&Gs new products and new solutions for building new brands, moreover, making the variety. The fast spee
42、d can help P&G totally differs from laggards. So, the company found some new ways to fix its market share lost problem and help its retailers regain their sales. Firstly, P&G cooperated with Cisco Corporation, set up a digital world by reinvesting its marketing. Due to the internet epoch in 21st cen
43、tury, in a word, P&G embraces the inflection provided by the new digital system.On January 14th, 2010, the “Estore” of P&G was tested and would absolutely impact some of its biggest customers, major traditional and online retailers directly. This “lab” testing program is seen as a venture for a cons
44、umer products manufacturer, but could also promote for its retailers and advertise its special offer to the customers. P&G Jumping Into Retail Online, Testing New SiteSecondly, P&G optimized outbound transportation by changing a “multimodal” fashion, using multiple forms of transport into “intermoda
45、l” transportation, which uses shipping containers that transfer smoothly from one mode to another. By means of intermodal approach process, which helps goods shifting away from trucks and planes to boats and trains, P&G also saves fuel and establishes environment-friendly transportation system. Thir
46、dly, P&G implements its supplier diversity program, which means that the companys consumers, customers and suppliers become more diverse and change their needs every day. The program depending on understanding their work efficiency and needs solve the out-of-stocks problems and release the pressure
47、on supply chains. The company collaborates closely with its suppliers across the entire supply chain and keeps the sustainability by guiding the developing of relationships with suppliers. “Were changing our overall approach to supply chain management to become even more consumer centric.” said Mike
48、 Power, President, and Global Business Services. The right product at the right time at the right place will significantly gain sales volume and market share of the company. The close relationships could avoid stocks problems and help more on time delivery, more desirable products and more satisfied
49、 consumers.PromotionPromotionAs one of the most successful companies in the world which did an excellent job in promoting their products and a verity of brands, P&G have their own unique and suitable promotion strategy system. Combined with different forms of promotion, P&G make more customers and p
50、otential customers know its name and those brands belong to P&G, not only in US market, but also international market in a whole.Just like the other Top500 enterprises did, P&G ranged a huge number of money in promoting their products, the first method is doing advertisement, involving TV, magazines
