Procter and Gamble
Marketing strategy spells out the strategy to achieve certain objectives. To execute the assigned requirement, United Kingdom perspective of Procter and Gamble has been chosen. In the first part of the report situational analysis, industry analysis, STP analysis and performance analysis has been shown. Situational analysis is comprised of PEST analysis and SWOT analysis. P&G has strong brands image and customer loyalty and these are their significant strengths. In contrast, they are facing threats of substitute products of competitive rivals like Unilever, Johnson and Johnson and so forth. The personal care industry in UK is very much competitive as market is …show more content…
The company mainly focuses on the research and development which brings innovation resulting making new products that explore the opportunity in different mature market like United Kingdom (Businesscasestudies.co.uk). In mature and developed markets, absolute product differentiation and broad differentiation are the ways to survive and attract the new customers and P & G follows the strategy. There is a great opportunity in hair and conditioner market in UK where the company can gain more profit by producing the health and beauty product for men.
In United Kingdom, the main competitors for the P & G Company are Unilever, Johnson and Johnson and Kimberly Corporation. Many local companies provide personal care products in cheaper prices due to location advantage and cheap factors of production. Government and international politics in home and foreign countries creates threats for the chosen company. Recession has reduced customers spending globally as price of raw materials hike, price of products are also forced to increase.
1.2 PEST Analysis
Many major companies have failed, lost their market shares or gone out from the business because of their failure to recognize and adapt to change in their external environment. The key point is that the organization needs to be tune with its often turbulent external environment and there must be a strategic fit between what external organization needs and what the organization offers. PEST analysis includes four