The Influences Affecting Global and International Marketing of Always - Research Paper Example

INTERNATIONAL MARKETING By and Procter & Gamble (P&G) is a large American household products firm with a vast global presence. The firm produces Always brand and offers educational programs with the aim of helping the female manage their periods. It, however, faces stiff competition in various localities, which has at times threatened to derail its business activities. Nevertheless, P&G’s Always brand has managed to successfully maintain its market leadership, strategically venturing into new and upcoming markets. Owing to financial disparity among world populations, P&G has adopted a differentiated marketing strategy to help in maintaining the client base. Keywords: P&G, Always, Differentiated strategy, Market leadership, female/feminine Introduction Procter & Gamble has no doubt been able to successfully venture into the international market, a prospect that most equivalently large American market can only imagine of. The firm produces a wide array of products targeted to different customer groups, thus enhancing profitability by the firm, while at the same time positively orienting the company to changes in market forces; a factor that if not well catered for can easily derail business performance of a company and even cause collapse. Some of the fields in which P&G has successfully ventured into include beauty, baby and feminine oriented products and family care products. P&G is also actively involved in global health and grooming sector, producing Gillette- a leading male grooming product (Rehtmeyer, 2010: 1). Since introduction of Always in 1984, P&G has brought pride the feminine gender, especially at the time of months when in normal circumstances they would have been less social and dull. Always has progressed through many stages of innovation, introducing winged and ultra-thin pads, in an attempt to enhance hygiene in the feminine sector. The brand- Always infinity is a product that combines commendable absorbency, enhanced softness and remarkable flexibility. In addition, Always brand has enforced worldwide puberty education to young girls undergoing puberty thus positively transforming women lives (P&G 2014).This study, therefore, aims at critically analyzing the influences affecting global and international marketing of Always. International marketing Defining International Marketing The desire of any large firm is to conquer the world market and operate as a global leader able to satisfy the demands of all stakeholders and attract top talents (Fejza and Asllani, 2013: 328). International marketing, therefore, comes in handy in spearheading achievement of this noble dream of many managers. International is an expansion perspective which involves the firm marketing decisions affecting business ventures across national boundaries. In some instances, this process of marketing can involve the business firm establishing production and operational plants within the countries the business has ventured into. Most firms, however, opt to establish distribution networks with already established firm. This has been seen as a suitable strategy, especially when the firm is just venturing into a new market, which in many instances may be full of uncertainties. To the consumers, however, signing of distribution agreements with other firms may not be quite a good strategy since the private firm is now accorded full rights to setting prices of the products, at times highly exploiting the consumers (Doole and Lowe, 2008: 5). Global marketing is a more complex venture that at times requires keen involvement of decision making organs to set the right direction forward. It is, however, a good strategy in benefiting from the constantly varying exchange rates between different countries. Importance of International Marketing Internationalization of businesses has played major roles in various spheres of life. The sole aim of business firms is to make profit. It provides the firm with an avenue to sell their surplus production at competitive prices at the widened international market base. This also acts as an appropriate way of risk mitigation by the business firm, especially at times of uncertain economic trends in other localities. Larder international business firms operate at sustainable economies of scale, which enable the firms to sell their products at lower prices consequently edging competitors. Keen analyses have indicated that international brands tend to appeal more to consumers compared to local brands. On consumer perspective, the international businesses bring with them competition, which results into lower prices affordable to majority. The CSR ventures by large international business have been essential in promoting lives and economies in many nations. Indications have also pointed towards globalization as an essential factor in promoting international peace and collaboration. A nation’s image can be easily developed in the international scene based on the manner in which her international firms conduct their operations. Influences Affecting Global and International Marketing Several factors have been observed to have great potentials to either positively or negatively impact on international business operations. The first key factor is the cultural differences in different localities across the globe. It is notable that the billions of people across the world speak distinctively different languages, making social interaction with company employees difficult, especially when such staff members are deployed in areas comprising a population with whom they don’t have clear linguistic understanding. Doole and Lowe (2008) observe that any firm targeting international success must be in a position to fully understand the values of the locals failure to which it is likely to face magnitude of challenges, a situation that was faced by Coca Cola in China, and has also been faced by P&G in launching various products (Doole and Lowe, 2008: 8). Religious differences and political outlines within different localities play major roles in business adaptation process. To be successful in international business, it therefore becomes imperative that firms align themselves with the new political and religious settings (Jurković and Kuštrak, 2013: 287). In addition, the different legal setup in different countries is a critical factor of consideration in business globalization process. In our perspective with P&G’s Always and other products could be differently welcomed in different localities. For example, there could be laws in Islam countries governing usage of hygiene oriented products. Besides, there is a great disparity in economic environment between different countries, a factor that determines the purchasing power of the people. A classical example is the comparison between the purchasing power of the US population and the people of a third world country such as Somalia. This there means that any company must reconsider their options before venturing into the economically challenged nations. Research has indicated that developed economies of NAFTA, EU and Japan control 80% of the world trade (Doole and Lowe, 2008: 13) hence forming a rich client base on which to set up a sustainable business. Another key factor that needs attention is the timing of business internationalization process. It is for instance not advisable that young firms venture into international business as this may negatively impact on management and hence performance of such businesses (Zhou L, Wu A, and Bradley R. 2012, 39). Moreover, technology may also effectively play a great part in shaping the direction of a business firm (Doole and Lowe, 2008: 37). Research and Development Defining Research and Development (R&D) R&D is an investigative venture carried out by a business firm to determine the right course for the firm. This is specifically important for highly innovative companies like P&G that are interested in producing new product lines targeted to appeal more to clients. To effectively ward off competition and become a market leader, a company must be able to competitively position its products in line with the consumers’ demands. In many instances, product positioning may include improved quality at affordable prices. In the case of always, innovation has driven production of newer, better variants that are widely acceptable among users (P&G, 2014). R&D involves collection, recording and analysis of product related information critical in making key decisions on the product. This research can either be based on secondary data or primary data through interviews. Importance and Implications of Research and Development Inadequate market research has often played a great role in speeding up business failures. In many instances, it has often been thought businesses fail as a result of inadequate financing. On the contrary, market analysts have indicated that market research play greater parts in this process. It is necessary that a firm gets adequate knowledge of the expected business environment before venturing into operations within these new localities. As such, in-depth market analysis becomes inevitable. Labor patterns vary from locality to another, but have a great impact on business operations. Successful firms often have well educated and experienced labor to aid in running of their operations. In some instances, such firms are called into imposing educational programs to the staff to aid in their service delivery efficiency. To initiate such educational programs, a firm needs to have conducted adequate research and planning. In addition, Rouse E observes that schooling is a key ingredient in enhancing labor outcomes and hence business success (Rouse E 2005, 3, 10). The prospect of managing international employees can as well become tiresome to managers lacking international experience thus needs to enlighten such managers before venturing into operations. As earlier stated, planning and mobilization of financial resources is a key factor in preliminary business activities. It therefore comes in handy that adequate market research provides a good platform for upcoming and established entrepreneurs to identify and hence venture into new business opportunities. With the rapidly growing world population, resources are increasingly becoming scarce. These limited inputs must however be mobilized to cater meet the growing demand. This hence means that firms need to make appropriate decisions so as not to run into operational and maintenance crisis (Tal B 2012, 1). Culture and aspirations of a people plays a great part in product acceptance or rejection. A notable example was the launch of condoms in various countries during which stiff resistance to the product on religious grounds was encountered. As a result, any products must orient themselves in such a way that they appeal to the local masses (Homburg, et al. 2009: 14). Alternatively, firms can adopt proper marketing strategies that will help build the image of the product in the public arena. The organizational culture and operational climate provide proper guide on the expected directionality of the firm. Firms must therefore be able to from time to time review their activities and performance to determine whether they are in line with their key objectives (Deshpande and Webs, 1989: 8). Strategic Analysis Entry strategy Thus far, Procter & Gamble has been able to successfully use different entry strategies into different world markets for different products. The milestone of success attained by the American giants in the Chinese market is a clear indication of the firm’s determination to prosper in the international scene. This study notes that one of the best entry strategies into the international arena is brand stretching coupled with intensive HR activities. This strategy enables the firm to sell its brand to the people without involving third parties. However, there are indications that this strategy can be full of risks if not properly planned for. Cannibalization of many brands has often been a common phenomenon in international arena, with established brands suppressing and hence killing off arising competition. This directly relates to the experience of P&G while launching its products in China. It was notable that Always faced stiff competition from established Chinese brands, a competition that could have easily killed off the always brand. Nevertheless, the firm was able to produce competitive products with price tags at par with competitor products to win over lower and middle income earners. This trend has also been translated in third world countries where P&G has considerably adjusted prices of not only Always but also other products such as tooth pastes. The entry should be followed by defensive strategies such as faster innovation and enhanced flexibility to ward of late comers and win over the client based originally occupied by earlier companies. SWOT Analysis Strengths Always brand is currently whose use has been adopted by many adolescents and young adults worldwide. Innovation has led to production of better variants while the strong financial position of the parent firm P&G has ensured proper advertising of the product. Weaknesses The company lacks proper quality leading to quality products generating low revenue while competition in some markets (China) has led to low revenue from the products. Opportunities The developing nations have great market potential for the firm, while increasing female populations is also a sign of hope for the Always brand. Threats Competition from other pad brands could derail the already established market, while regulatory and religious restrictions could impede the sale of always in various countries. (Source: Hooper B et al 2007, 13-20) Competition and Competitive edge To maintain a competitive edge, the American giants have used various mechanisms to ensure that Always reaches as many clients as possible. The firm has used innovation as key driver to produce products suited to different client categories. In addition, the wide range of always brand products gives consumers a wide range of products from which to choose. The firm notes that the best way of selling their products is by enlightening potential clients on the benefits they will be subjected to should they buy the products. as a result, P&G has initiated educational programs targeting females at puberty to enlighten them on the need to maintain high hygiene standards at during periods (Always.com, 2014). The programs also aim at enlightening the clients on the best ways to manage their periods so as not to be disrupted from their normal daily routines. The firm has also set up various distribution outlets and supply channels in over 180 countries worldwide. These outlets and linkages have enabled the products of the firm to reach deep into the developing nations thus enhancing profitability of the firm. Observations indicate that well managed supply chains with proper understanding with the parent organization can easily revamp growth of a firm into international status (White, O’Connor and Rowe, 2004: 1-1). Target Market Decisions The firm’s products are mainly targeted to households, with always targeted to improving the value of the feminine gender. With a vast market share and global presence (Logan, Repp and Venkatraman, 2010: 5), P&G has resorted to differentiated price strategy to maintain market leadership in different localities. The purchasing power of a third world consumer is, for instance, considerably lower than that of an American working class consumer. As such there was great need for the company to diversify their products based on localities and economies in question. This has hence enabled more teenage and young adult girls to get access to Always across the globe. In addition, raw material availability varies from place to place necessitating regional control of product prices. Promotions and offers by rival company may also be determinants of product prices. These promotions vary with localities and time necessitating quick decisions to be made at regional levels. in addition, the product array produced by competitors may act as a guide on what a firm needs to do to survive in a given market. Findings and Conclusions To this end this study determines that Procter and Gamble has indeed been able to effectively globalize its product- Always. The study also commends the company for its innovative and educative programs through which it has touched the lives of many. The company however has more room for expansion having effectively sold its earlier brands to the public. With the advanced focus on technology currently exhibited by the firm, P&G’s products will only appeal more to the clients. In addition, the ability of the firm to take risks is commendable. Venturing into new markets is full of risks and hence P&G must be prepared to go through such risks especially in the developing nations in order to expand business ventures. 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