Strategy Plan of P&G Company
Procter and Gamble is a multinational, public company that came into existence in the year 1837 as a consumer goods industry.
The company is in Cincinnati, state of Ohio, in the United States of America. The company’s CEO is Mr. Bob McDonald. The company has experienced a massive extend of success in the past years mainly because of its marketing strategy. The company gives equal attention to all sectors and market segments that conduct business with it, regardless of the size of the segment and what it contributes to the company in terms of profits and public image.
One can see this through the company’s mission, which revolves around elevating the standards of life of consumers through the introduction of chains of modernized brands of superior quality. The company has purposed to provide branded products and services of superior quality and value that improves the quality of lives of its world consumers. All this is to gain market share from the consumers, huge profit, and value creation, a move that will prosper the livelihoods of all consumers. The company has also embraced innovation of new goods and services, which satisfy the needs of consumers in the whole world (Boone & Kurtz, 2011). The paper, therefore, will analyze some of the strengths that have contributed to the success of the Procter and Gamble Corporation and the obstacles that the company has experienced in its journey to success. Strengths of P&G Corporation Research has indicated that Procter and Gamble is the highly ranked company in the world in terms of consumer goods production.
This means that the company is the best in terms of marketing and its marketing strategies. This has given the company an upper hand over other companies in the industry. For instance, consumers will accept easily an innovation or a new product concept that the company initiates than a new product by other competitor companies. Therefore, the company can easily initiate a new idea in the market, giving it an edge above others in terms of implementation of its marketing strategy plans (Ferrell, 2010). Another strength that Procter and Gamble has is that i has positive relations with some of the best sellers in USA and the whole world.
This makes the company reduce the cost of supplying its products and services through reduced advertisement costs. Best sellers usually have consumer trust, and therefore, do not need advertisements to market their products. In addition, the company usually makes innovations in its products and services and proves its functionality, a fact that consumers like. Such an effort increases the level of consumer loyalty to the company’s products, which raises its revenues (Ferrell, 2010). Weaknesses of Procter and Gamble Despite the company having several strengths that facilitate its success, it also has some weaknesses that hinder the full realization of revenue and success in the market. In the present world, any element that can hinder the acceptance of a product in the entire world can massively affect the level of revenues from sales.
Procter and Gamble Company has never accepted the identity of being a private manufacturing producer. This has led to several bans in some countries, which had frustrated its efforts of raising its market share in the world.Similarly, the company does not have adequate representation in the media, a fact that has led to many, questioning its leadership structures (Paley, 2006). Opportunities There are opportunities that the company can capitalize on to strengthen its marketing strategy plans. For example, there is room for the company to embrace technology and use the online media.
Currently, most product consumers regularly use online services. Thus, making online advertisements can massively improve the degree of accessibility of the company’s products. Secondly, the company has an opportunity of embracing diversification in its product lines and services to maximize on the number of consumers of their products. The management of Procter and Gamble ought to conduct market research in its target markets or its primary markets, to identify some of the needs and preferences of its consumers. With this, company ccan then come up with new and superior products that adequately meet the requirements of all consumers.
Another marketing strategy that the company is initiating is the reduction of the length of the chain of delivery. Products that have a long chain of delivery from the producer company to the consumer tend to raise the costs of production, a burden that the consumers bear. Procter and Gamble has initiated a plan of reducing this chain by eliminating middlemen and agents, and supplying the products directly to its consumers (Sandhusen, 2008). Company threats Despite all the opportunities that the company has to develop its marketing plan strategy, there are threats that are likely to frustrate its progress. For example, there have been claims that the government is likely to privatize the company. Such a move can have an immense impact on the rate of growth of the company.
This is because the company will now have restrictions it its attempts to open branches in other countries other than USA.In addition, several firms are coming up in the industry. These competitors are expanding at an alarming rate, which is giving the management of Procter and Gamble a hard time on what strategies to implement to ensure they maintain their position in the world market. The company operates in a free and competitive market, where there are no restrictions to entry or exit. Thus, with the entry of many new firms in the industry, the company is likely to experience a reduction in its revenues (Pride, Hughes & Kapoor, 2012). Procter and Gamble Marketing Strategies Brand Management Strategy Brand management is one of the areas that Procter and Gamble has invested in to facilitate and enhance its performance in the market.
The company has made several legislations that have ensured protection of the identity of most of its products. The company has copyrighted its products and differentiated its packaging from other firms in the industry. This has ensured a unique identity of all brands of products that the company manufactures.