Environmental analysis of proctor and gamble

Assignment Help Marketing Research
Reference no: EM13793619

Environmental analysis of Proctor and Gamble

P&G is one of the largest consumer goods company, it is faced with significant strategic issues. The company's product portfolio comprises home, beauty, baby care, health, personal care, family, and pet health products. Despite having a strong brand portfolio and market positioning, the company is faced with competition in the industry, which makes it difficult to maintain its growth and sales volumes.

The company's healthcare segment comprises products in feminine care, OTC drugs, toothpastes, oral care, and personal care categories. This segment accounted for 11 percent of the company's sales in 2014, with these products being sold mass-market merchandisers, supermarkets, and drug stores (P&G Report 11). This market segment is mature and is characterized by name brand and private label competitors such as Pfizer, MERCK, Bayer, Novartis, GSK, and Johnson & Johnson (Euromonior International 8). These private brands offer intense competition because they are cheaper compared to products marketed by P&G. The core competencies of this market segment include strong, reliable, and superior quality products. The products adhere to stringent internal standards and comply with Food and Drug Administration standards. The only product recall the company has experienced in the recent past is the

Vicks 4-hour nasal spray, which was recalled in 2010. Another core competency is the company's focus on research and innovation through its Health Care Research Center that promotes innovation and development of new products to meet market needs.
Family and baby care is another product segment of product and gamble and it comprises products such as baby wipes, paper towels, diapers, and toilet paper. It contributes approximately 19percent of the company's sales. These products are sold through supermarkets, hotels and motels, convenience stores, and other industries. Key competitors in this segment include Koch Industries Inc, Johnson & Johnson, and Kimberley-Clark.

The other product segment is the beauty segment, comprises products such ad skin care, hair care, cosmetics and fragrances. This segment accounts for 34 percent of the company's product portfolio. Leading brands in the segment include Pantene, head & shoulders, and Olay. The products in this segment have core competencies such as great product availability since most of the products are sold in almost all drug stores and retail chains. Additionally, the products in this segment are highly recognizable which gives its string brand differentiation. Lastly, the company's beauty products are associated with tried and trusted products. The main competitors in this segment include L'Oreal, Unilever and private labels. This segment is important to the company since it registered a 3 percent net sales growth from 2010 and represents 24 percent of the company's net sales (P&G Report 9). The main threat to this segment is threat of rivalry from competitors such as L'Oreal.

The fabrics and homecare product segment comprises fabric conditioners, cleaning products, homecare products such as surface cleaners, detergents, air fresheners and batteries. This segment is important to the company because it dominates 30 percent of the world market share. Furthermore, it is the largest and most lucrative of all segments and it has been growing at a rate of 6 percent since 2011. It is also the most mature and it comprises brand name and generic brands. Snack and pet care product segment is the smallest of al segments and is the least profitable; it recorded net sales of 4 percent in 2011. Previously, Pringles was the only snack brand the company has added Iams and Eukanoba. This product segment is faced with several threats. First, it lacks presence in other industries and it faces fierce competition. Secondly, extending the product segment will entail significant investment in the development of new products and brands. Lastly, competition in the segment is more industry-faced.

Based on this environment analysis, P&G should adopt several strategies in order to remain competitive. The first strategic decision is to divest or selloff least performing business segments such as the snack and pet care segment. This is the least profitable of all the segments and it will demand a huge investment to make it profitable. By selling this segment, the company can focus on profitable business segments such and the home and fabrics, and the beauty segments. Furthermore, it will give the company an increased opportunity to innovate in profitable business segments. Another strategy is to acquire new customers by investing in developing markets such as Latin America, Asia, and Africa.

These markets offer growth opportunities and they are not competitive. Geographic expansion will allow the company to take advantage of the projected population growth in developing markets (Euromonior International 32). Another strategy is to enhance productivity in all areas by lowering excess inventory and RM costs. This can also be achieved by investing more on research and development to ensure that new products are developed to satisfy new needs and to facilitate continuous improvement. Lastly, the company should continue to cultivate the open innovate: connect + development. This form o innovation is both inbound and outbound and includes business processes from marketing, engineering, packaging to business services.

Reference no: EM13793619

Questions Cloud

Amount of scrap material that resulted from the demolition : ABC Company purchased a piece of land with a pre-existing building on it for a price of $250,000. In order to prepare the land for future construction, the old building was demolished at a cost of $15,000. The amount of scrap material that resulted f..
Political problem associated with the act : Examination of either the Clean Air Act or the Clean Water Act - Describe the major provisions of and amendments to the act and evaluate the overall effectiveness of the act in protecting our air or water resources.
Write a persuasive essay either supporting veracity of theme : Write a persuasive essay either supporting or denying the veracity of the theme statement.
Assume that unit purchases exceed unit sales : You are CFO of Goforit, Inc., a wholesale distribution company specializing in emerging technologies. Your CEO is a brilliant marketer, but relies on you to explain issues and choices in accounting and finance. Goforit carries significant electronics..
Environmental analysis of proctor and gamble : Environmental analysis of Proctor and Gamble
Problems based on ergogenic aid issues : What is meant by the term ergogenic aid? Please select 3 possible ergogenic aids and share:
Develop the skills to assess economic issues : Develop the skills to assess economic issues that would affect their lives as workers, consumers and citizens, and to demonstrate an awareness of the fact that economists hold differing views on some economic issues.
Ethical issues be considered in making business decisions : Why should ethical issues be considered in making business decisions? How (provide example) is the accounting profession held to a different standard?
Reports as a net loss for financial reporting purposes : Khan, Inc. reports a taxable and financial loss of $1,950,000 for 2015. Its pretax financial income for the last two years was as follows: The amount that Khan, Inc. reports as a net loss for financial reporting purposes in 2015, assuming that it use..

Reviews

Write a Review

 

Marketing Research Questions & Answers

  How quality management and control processes

Discuss two examples of how quality management and control processes were (or should have been) integrated into the infrastructure project supply chain network. Provide specific references

  Market research to find out men and women feel differently

A market research firm wants to find out if men and women feel differently about SilkyTouch facial tissues. In a survey of 90 men, 76% said they had a favorable impression of SilkyTouch

  Overview of ethical issues in marketing and research process

Find a company/organization who has misused statistics or who has been unethical in their marketing research. Write a case study about that experience, citing clearly and providing examples.

  Jerry has done some analysis

Jerry has done some analysis about the profit ability of the bicycle shop. If Jerry builds the large bicycle shop, he will earn $60,000 if the market is good, but he will lose $40,000 if the market is bad

  Products or services and marketing plan

Explain how you intend to promote your products or services and Marketing plan - Discuss the pricing for your major products (items) or services.

  Matching structure with strategy i am working on matching

i am working on matching structure with strategy and the question is ltbrgt ltbrgteven in an industry that is not so

  Discuss the impact of marketing strategy on profit

Discuss the impact of marketing strategy on profit in 2 business.

  Conduct an article research regarding an aspect of airport

Conduct an article research regarding an aspect of airport safety (not security) or runway incursions. Summarize the article and correlate the reading to the current module.

  In a 250-300 word response examine how the use of

in a 250-300 word response analyze how the use of technology has impacted organizational communication both positively

  Analyse the confluence of marketing

Demonstrate cognitive knowledge of the skills required in conducting online research and research on online markets, as well as in identifying, assessing and selecting digital market opportunities.

  Explain how your discount rate was derived

Case-Hongxing Auto Sales And Service Co. Prepare a 5 year Free Cash Flow and DCF analysis. Be sure to explain how your discount rate was derived

  Surcharges q 1 what is the difference between heavy lift

q 1. what is the difference between heavy lift surcharges and long lift surcharges. explain in brief?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd