Protecter & Gamble - Strategic Marketing Plan

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4.1.1 Market Development 20[pic 19]

4.1.2 Best-Cost Provider Strategy 20-21[pic 20]

4.1.3 Implementation 21[pic 21]

5.0 Financial Assumptions 22[pic 22]

6.0 Controls

6.1 Balance Score Card 22-23[pic 23]

6.2 Quality Control 24[pic 24]

7.0 Contingency 24-25[pic 25]

8.0 Conclusion 25[pic 26]

9.0 References 27-33[pic 27]

10.0 Appendixes 34-35[pic 28]

1.0 Introduction

Procter and Gamble (P&G) is the global company that sells consumer packaged goods in more than 180 countries (P&G, 2014). The company is based in Cincinnati, Ohio, United States. The company’s vision is “Touching Lives, Improving Lives” (P&G 2013 Financial Statement, 2014) with 126,000 employees (Johnson, 2012). The chosen strategic business unit (SBU) for this case is Global Home Care and Fabric. The chosen SBU has 34 brands and the brands are varied depend on the target market (P&G, 2014). In this report, external and internal environment will be analyzed in depth to identify the strengths and weaknesses of the company following by the current strategy of P&G. The recommendation will be given for P&G to achieve its objectives; assumptions will be made for future performance and providing control tools to achieve its objectives as well as contingency plans.

2.0 Situational Analysis

2.1 External Analysis

2.1.1 Politics/ legal

In 2009, the United States (US) initiated bubble-bursting strategy on real estate value through tightening up their subprime lending regulation as well as credit rating procedures, and the interest rate, which led to a tragedy fall in household spending (Dynan and Edelberg, 2013). It is understandable that businesses within the industries of supplying necessities would most likely suffer less, yet looking at the graph depicting shares of P&G in 2009, it can be visualized an almost vertical drop (Money.cnn.com, 2014).

P&G operate widely around the Globe, and they are fully complying on laws and regulations depending on specific location that they are operating within. Moreover, they have put their emphasis on their standard of safety for the products (Pgproductsafety.com, 2014).

2.1.2 Economic

The United Stated is known as the largest economy in the world, which could easily influence other countries’ economy due to the strong value of US dollar used in most of global transactions (Worldfinancialwatch.com, 2014). In 2008, US have announced a recession, which brings strong effect onto businesses (Cia.gov, 2014). This is when a giant business like P&G was affected. Due to this down turn, P&G shares was taking continuously dip from late 2008 to summer of 2009, when US central bank have announced that the recession state is officially over. P&G largest market, the US, later in 2010 hit a double depression state, yet P&G was then remained un-affected, with rapid growth as well as higher dividends paid to shareholders annually (Planes, 2014). As mention above, with the products are necessities; P&G is naturally leaning on the safe side even when the economic is on a down turn.

2.1.3 Social

It is consensus to comprehend the fact that women in the social group plays a majors role within P&G segmentation. They most likely would make decisions on purchasing products on home-care products (Dodgson, Gann and Salter, 2006). Besides that, due to the recession of the economy, the US consumers seem to change their purchase behavior toward less expensive products. It shows that 18% of package-product consumers have purchased cheaper brands since 2007 (Bohlen, Carlotti and Mihas, 2014). Moreover, in case of P&G, the company’s executive stated that there is a fall in the middle class consumers in purchasing more expensive goods. They are changing towards buying lower price household products, which would force the company to change its way of selling goods to the consumers (Byron, 2011). In addition, it is said that the Asian consumption is rising rapidly with an increase in middle class consumers and it is predicted to be surpassed North America and Europe in the near future (Ranasinghe, 2014).

2.1.4 Technological

In term of innovation, P&G constantly improving their ingredient, yet strictly following the guideline of product safety. Recently in 2014, P&G have opened up an Innovation Center, which provide labs in order to process researches base on customers oriented. This would then help P&G to develop more specialized products for specific needs. As the company is know as primary innovator, it would help to contribute to the company’s objective to gain competitive advantage that could differentiate its products from others. Moreover, with the innovational center, they would have more ability as well as tools in order to read into the market trends, as well as segmenting their market base on needs and enquiries (Dodgson, Gann and Salter, 2006).

2.1.5 Environmental

P&G has put their attention on energy and resources management (Pg.com, 2014). They are conducting business in such way that it would guarantee them spending less energy making per product, that the amount of energy it is needed to be used at home, which ultimately contribute directly Global energy saving campaign. With the current global warming and climate change situations, businesses would look into sustainability as the ability to operate in a long-run and effectively cope with the environment situation (Orlitzky, Siegel and Waldman, 2011). In this case, P&G are doing their best in order to guarantee no land-fills from their products or operation and production.

2.1.6 Porter’s five forces

Threat of rivalry: High

Competition against famous brands are the most intensive in regions whose customers have better information and awareness of health and quality such as the US and Europe (Euromonitor, 2014). In smaller markets in developing countries, the competition is more intensive between well-established