Procter and Gambles Marketing Strategy - Term Paper Example

Procter and Gamble, including its predecessor, has been in operation since the early half of the 19th century. It has pioneered in practices considered to be hallmarks of contemporary business, such as marketing research and database creation, human resources engagement and profit-sharing, consumer relations, and research and development. P&G’s marketing strategy is to develop distribution channels at the local level and has correspondingly organized its market development units according to its regional markets. It also aims to develop new product brands and enhance its current brand portfolio. Its core competencies include innovation, brand-building, go-to-market capabilities, scale, and consumer understanding.

Among the company’s strengths are its strong R&D focus, market leadership, product portfolio diversification, and strong cash position. However, it has experienced increasing incidences of product recalls high product prices that have caused a decline in sales volume, and a loss in market share. The company expects to recover, however, by widening its customer base and increasing its worldwide market share by advancing more aggressively into emerging markets. It will realize this goal through three initiatives, namely integration, simplification, and digitization. Eventually, it expects to resume its former positive market growth.

Unilever is a global leader in the manufacture and distribution of fast-moving consumer goods. Its portfolio includes some of the best-known brands in the world, in foods, home care, and personal care. The company’s forerunner was founded in the late 19th century by William Hesketh Lever but assumed the name Unilever in 1930 when it merged with other consumer goods companies that had likewise been in existence before the turn of the century. It turned global in the sixties and attained market leadership in the eighties which it maintains to the present.

The firm has manufacturing facilities worldwide and serves a broad cross-section of the market since its products target customers of all walks of life. Among its core competencies is the ability to conceptualize products, its global logistics network, its scientific research in nutrition, and the ability to communicate and influence public behavior. Its strengths include a strong brand portfolio, diversified revenue streams, and a strong focus on R&D and sustainability. It has a problem, however, in maintaining its sales and profitability performance which have constantly declined in the three years covering 2007 to 2009, indicating that it has a particular vulnerability to the current economic recession. This is attributed to intense competition, rising inflation, and reduced consumer demand.

The company foresees opportunities for growth in emerging markets and chances to enhance its product portfolio by making some select acquisitions. The firm intends to divest some of its non-core business activities and concentrate on its principal product lines. In the immediate future, it aims to double the size of its business while reducing its impact on the environment. Read More